Hovnanian, R.I.P.?

It looks like homebuilder Hovnanian is in a heck of a lot of trouble:

Hovnanian, the big New Jersey-based homebuilder, got a big no thanks from its bond holders [last] week. The company had tried to reduce its massive $1.6 billion debt load by offering bondholders new securties paying 18% interest. The catch was they had to accept just 60 cents on the dollar for their outstanding notes. Just $71 million worth of bonds were tendered.

The move was an attempt to preserve some assets for stockholders, including the 18% of the shares owned by management and the Hovnanian family, says the debt watchers at the research firm Gimmie Credit.

Over the past twelve months, the company lost $17.16 per share. Hovnanian's stock was recently trading for $2.19 per share.