Orleans Homebuilders Announces the Maturity of its $350 Million Senior Secured Credit Facility
19 Febbraio 2010 - 10:30PM
PR Newswire (US)
BENSALEM, Pa., Feb. 19 /PRNewswire-FirstCall/ -- Orleans
Homebuilders, Inc. (the "Company") (AMEX:OHB) announced that, as
previously disclosed, the Company and its senior management have
been working actively with the Company's bank lenders to obtain a
maturity extension of its Second Amended and Restated Revolving
Credit Loan Agreement dated September 30, 2008 (the "Credit
Facility"), as amended from time-to-time. Any extension or similar
modification or accommodation under the Credit Facility requires
the consent of 100% of the approximately 17 bank lenders. However,
the Company and its lenders under the Credit Facility were not able
to obtain the necessary bank approvals to extend the maturity of
the Credit Facility pursuant to the non-binding term sheet agreed
to by the Company with certain lenders on December 3, 2009. The
Company and its lenders were also unable to agree on any temporary
modification of, or other accommodation under, the Credit Facility.
As a result, the final maturity of the Credit Facility occurred on
February 12, 2010, and the Company is now in default, which
entitles the lenders to all rights available to senior secured
creditors. The Company does not have sufficient funds to repay the
amounts outstanding under the Credit Facility. The Company also
noted that it was continuing to consider certain options for new or
modified funding sources to continue normal operations, including
in connection with an in-court or out-of-court restructuring of the
Company's liabilities; continuing its negotiations regarding a sale
or recapitalization of the Company; or obtaining a temporary
modification of, or other accommodation under, the Credit Facility.
However, there can be no assurance that the Company will be able to
consummate any transaction on terms acceptable to it or the senior
secured lenders, or that any such transaction would provide any
value for either the Company's unsecured creditors or its equity
holders. The Company intends to act promptly to resolve its
financing issues, although there can be no assurance that the
Company will be able to do so at all or on a timely basis. About
Orleans Homebuilders, Inc. Orleans Homebuilders, Inc. develops,
builds and markets high-quality single-family homes, townhouses and
condominiums. The Company serves a broad customer base including
first-time, move-up, luxury, empty nester and active adult
homebuyers. The Company currently operates in the following eleven
distinct markets: Southeastern Pennsylvania; Central and Southern
New Jersey; Orange County, New York; Charlotte, Raleigh and
Greensboro, North Carolina; Richmond and Tidewater, Virginia;
Chicago, Illinois; and Orlando, Florida. The Company's Charlotte,
North Carolina operations also include adjacent counties in South
Carolina. To learn more about Orleans Homebuilders, please visit
http://www.orleanshomes.com/. Forward-Looking Statements Certain
information included herein and in other Company statements,
reports and SEC filings is forward-looking within the meaning of
the Private Securities Litigation Reform Act of 1995, including,
but not limited to, statements concerning the ability of the
Company to enter into new financing arrangements; potential
restructurings of the Company's liabilities; any value that may be
provided by the Company's unsecured creditors or its equity
holders; payments on its 8.52% Trust Preferred Securities and the
Junior Subordinated Notes; potential strategic transactions,
including refinancing, recapitalization and sale transactions
involving the Company; anticipated and potential asset sales;
anticipated liquidity; anticipated increase in net new orders,
conditions in or recovery of the housing market, and economic
conditions; the Company's long-term opportunities; the timing of
future filings by the Company of its Annual and Quarterly Reports
and the continued listing of the Company's common stock on the NYSE
Amex Exchange; continuing overall economic conditions and
conditions in the housing and mortgage markets and industry
outlook; anticipated or expected operating results, revenues,
sales, net new orders, backlog, pace of sales, spec unit levels,
and traffic; future or expected liquidity, financial resources,
debt or equity financings, amendments to or extensions of our
existing revolving Credit Facility; strategic transactions and
alternatives; the anticipated impact of bank reappraisals; future
impairment charges; future tax valuation allowance and its value;
anticipated or possible federal and state stimulus plans or other
possible future government support for the housing and financial
services industries; anticipated cash flow from operations;
reductions in land expenditures; the Company's ability to meet its
internal financial objectives or projections, and debt covenants;
the Company's future liquidity, capital structure and finances; and
the Company's response to market conditions. Such forward-looking
information involves important risks and uncertainties that could
significantly affect actual results and cause them to differ
materially from expectations expressed herein and in other Company
statements, reports and SEC filings. These risks and uncertainties
include our access to liquidity; local, regional and national
economic conditions; the effects of governmental regulation; the
competitive environment in which the Company operates; fluctuations
in interest rates; changes in home prices; the availability of
capital; our ability to engage in a financing or strategic
transaction; the availability and cost of labor and materials; our
dependence on certain key employees; and weather conditions. There
can be no assurance that the Company will have any option other
than an in-court or out-of-court restructuring of the Company's
liabilities. Additional information concerning factors the Company
believes could cause its actual results to differ materially from
expected results is contained in Item 1A of the Company's Annual
Report on Form 10-K/A for the fiscal year ended June 30, 2008 filed
with the SEC and subsequently filed Quarterly Reports on Form 10-Q,
as well as the Current Reports on Form 8-K and press releases filed
with the Securities and Exchange Commission on August 14, 2009,
October 6, 2009, November 5, 2009, December 9, 2009, December 23,
2009 and February 1, 2010. DATASOURCE: Orleans Homebuilders, Inc.
CONTACT: Dan Hilley of The Abernathy MacGregor Group,
1-213-630-6550 Web Site: http://www.orleanshomes.com/
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