TECHNICAL OLYMPIC S.A.
Press Release
TOUSA Announces the details of the Pre-Negotiated Deal With Senior Noteholders to Implement Restructuring and the fact that received Interim Court Approval of $135 Million Financing Agreement With Citigroup Global Markets.
TECHNICAL OLYMPIC GROUP?s management informs the investment community that, pursuant to the announcement dated 29/1/2008 according to which US subsidiary TOUSA Inc. had announced that it had received support from holders of more than fifty percent of its Senior Noteholders, subsidiary TOUSA Inc. also released today amongst others the detailed proposed terms and the conditions of the term sheet for the restructuring of its equity and all of its unsecured debt with its Senior Noteholders.
Additionally it announces that TOUSA has received interim Court approval to borrow as much as $135 million from Citigroup Global Markets Inc. to pay normal operating expenses, including employee wages, construction costs, and payments to suppliers. The financing is senior to existing debt and requires final Bankruptcy Court approval.
The competent Judge also granted the Company authority to continue customer programs, including customer warranties; pay employee wages and benefits; establish procedures to pay valid lien claims in the ordinary course of business; and to sell homes free and clear of all liens, with such liens to attach to the proceeds of the sales.
"The relief granted by the Court today will allow the Company to focus on executing its reorganization strategy and, at the same time, provide TOUSA with the liquidity and ability to continue normal operations, including building and selling homes, paying our valued suppliers, and following through on all of our commitments to our customers and business partners," TOUSA's representative said.
The relevant 8-K SEC filing submitted by the subsidiary TOUSA Inc. to the US Securities and Exchange Commission (SEC) as well as more information is available at our subsidiary TOUSA website, www.tousa.com, the website of the US Securities and Exchange Commission (SEC), www.sec.gov, as well as Courts website www.flsb.uscourts.gov (case number 08-10928).
TECHNICAL OLYMPIC GROUP?s management informs the investment community that, pursuant to the announcement dated 29/1/2008 according to which US subsidiary TOUSA Inc. had announced that it had received support from holders of more than fifty percent of its Senior Noteholders, subsidiary TOUSA Inc. also released today amongst others the detailed proposed terms and the conditions of the term sheet for the restructuring of its equity and all of its unsecured debt with its Senior Noteholders.
Additionally it announces that TOUSA has received interim Court approval to borrow as much as $135 million from Citigroup Global Markets Inc. to pay normal operating expenses, including employee wages, construction costs, and payments to suppliers. The financing is senior to existing debt and requires final Bankruptcy Court approval.
The competent Judge also granted the Company authority to continue customer programs, including customer warranties; pay employee wages and benefits; establish procedures to pay valid lien claims in the ordinary course of business; and to sell homes free and clear of all liens, with such liens to attach to the proceeds of the sales.
"The relief granted by the Court today will allow the Company to focus on executing its reorganization strategy and, at the same time, provide TOUSA with the liquidity and ability to continue normal operations, including building and selling homes, paying our valued suppliers, and following through on all of our commitments to our customers and business partners," TOUSA's representative said.
The relevant 8-K SEC filing submitted by the subsidiary TOUSA Inc. to the US Securities and Exchange Commission (SEC) as well as more information is available at our subsidiary TOUSA website, www.tousa.com, the website of the US Securities and Exchange Commission (SEC), www.sec.gov, as well as Courts website www.flsb.uscourts.gov (case number 08-10928).