Beazer Disputes Notice of Default for Senior Notes
Atlanta, GA, September 7, 2007-- Homebuilder Beazer Homes USA Inc. said Friday it has received default notices for five senior notes due between 2011 and 2016, though the company denies it has met default requirements.
The notice from U.S. Bank National Association, the trustee under the indentures governing the notes, claims Beazer has gone into default because it has yet to file its 10-Q report with the Securities and Exchange Commission for the quarter ended June 30 and thus failed to deliver those files to the trustee. The trustee alleges the default notices will become events of default if not corrected within 60 days.
Beazer claims it is not in default on the notes because it is only required to deliver the trustee copies of the 10-Q within 15 days of filing them with the SEC. It has yet to file the forms with the SEC pending an internal investigation by the company's audit committee.
Beazer has filed a lawsuit in U.S. District Court in