Orleans Homebuilders Defaults on $350 Million Loan

Orleans Homebuilders Inc. announced that it has defaulted on a $350 million loan, due to insufficient funds to repay the amount owed to its creditor. It also failed to renegotiate the terms of the loan.

February 22, 2010

Orleans Homebuilders Inc. announced that it has defaulted on a $350 million loan, due to insufficient funds to repay the amount owed to its creditor. It also failed to renegotiate the terms of the loan. Details of the default are as follows:

- The homebuilder said that its second amended and restated revolving credit loan began in Sept. 2008 and matured on Feb. 12.
- The company had been working with its lenders to lengthen the term of the loan.
- It could not get the proper approval by Dec. 3 or agree with lenders to any changes to the loan agreement.

The builder is looking at its options for getting funding, including restructuring in court -- which could refer to the possibility of filing for bankruptcy protection -- or out of court, or a sale of the company.

Comments on: "Orleans Homebuilders Defaults on $350 Million Loan"