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Beazer Home Loans

Atlanta, GA: (Oct-29-07) In a settlement reached with Beazer Homes, the troubled Atlanta-based homebuilder agreed to spend $18 million to buy six months of freedom from the threat of having to repay $1.5 billion of loans. The dispute stemmed from charges brought by the company's creditors, who requested the company to repay its debts in full in September 2007. The plaintiffs claimed that Beazer's failure to file a certified financial report for the period between April 1 and June 30 breached the loans' terms. That failure triggered the creditors' request for full repayment.

As part of the settlement reached, Beazer agreed to pay an additional $12.50 for every $1,000 in debt in exchange for forgiveness of any violation of its loan agreements until May 15, 2008. In its defense, Beazer continued to assert that the absence of the report was not a violation. The company is asking a judge to put a stop to the creditors' collection effort. Further, in addition to the cash incentive, Beazer has struck an agreement with its creditors to limit future borrowing to $700 million until the company's financial performance improves to a preset standard. [ATLANTA JOURNAL CONSTITUSTION: BEAZER DEBT]


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Published on Oct-30-07


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