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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (123327)	5/15/2008 4:54:14 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 306849

This is obviously why Beazer delayed filing their statements with the SEC. If they had not waited, they would have needed to point out that they were in default with their lenders and subject to bankruptcy. I'm expecting much the same from Lennar, or a BK filing. Subsequent Developments Subsequent to March 31, 2008, the Company received a cash tax refund of approximately $55.8 million relating to a fiscal 2007 net operating loss carried back to fiscal 2005. In addition, the Company currently has pending asset sales with estimated net cash proceeds in excess of $100 million which are expected to close over the next 120 days. These assets are located both in markets the Company is exiting and in those where the Company is maintaining a presence but has determined that sale of certain assets in these markets best optimizes its capital and resource allocation. The Company is continuing to pursue opportunities for the disposition of its remaining land holdings and inventory in those markets that it is in the process of exiting. On May 13, 2008, the Company obtained a limited waiver, which relaxes, until June 30, 2008, our minimum consolidated tangible net worth and maximum leverage ratio requirements under our Revolving Credit Facility. During the term of the limited waiver, the minimum consolidated tangible net worth shall not be less than $700 million and the leverage ratio shall not exceed 2.50 to 1.00. The Company is currently negotiating an amended covenant package with its bank group and expects to enter into an amendment prior to finalizing its financial statements for the fiscal quarter ending June 30, 2008. The Company currently has no cash borrowings outstanding under the revolving credit facility and current availability net of letters of credit of approximately $55.0 million. .