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.Over the past twelve months, the company lost $17.16 per share. Hovnanian's stock was recently trading for $2.19 per share.
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.
Monday, December 01, 2008
Hovnanian, R.I.P.?
It looks like homebuilder Hovnanian is in a heck of a lot of trouble:
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The American public is deathly afraid of the kind of changes we actually face -- such as, the end of consumer culture, the gross loss of value in suburban real estate (which forms the bulk of the middle class's private wealth), the prospect of food and fuel scarcities, the need to re-localize our lives, the need to physically shape up to stop the costly and unnecessary drain on our medical resources, to grow more of our own food, to work harder at things that actually matter, and to save whatever we can for a difficult future.
ReplyDeleteonly $71M tendered? hilarious.
ReplyDeletesorry, shareholders! you are last in line.