Technical Olympic USA on Wednesday morning announced a second failure to make semi-annual interest payments on a loan this month, creating additional challenges for a management team scrambling to restructure the business.

In an 8-K filing with the Securities and Exchange Commission, executives stated that the default was on payments due Jan. 15 on $200 million in senior subordinated notes due in 2015. The filing comes two weeks on the heels of another 8-K filing that stated that the company was unsuccessful in making its semi-annual interest payments on $300 million in senior notes and $185 million in senior subordinated notes due in 2010 and 2012, respectively.

If the company fails to make the interest payments within 30 days of the due date, it could face an accelerated repayment of those debts. Moreover, an immediate repayment also could trigger immediate repayments of other loans, potentially pushing the company over the brink.

For months, management, aided by various financial and management consultants from Kroll Zolfo Cooper and Lazard Freres, has been trying to ease the company's growing cash crisis. Dropping home prices and land values in the decimated Florida market have left the company's balance sheet susceptible to risk from its highly leveraged $857 million joint venture to acquire the assets of Florida-based Transeastern Homes in 2005.

To date, lenders have given TOUSA some leeway. In late October, it renegotiated a first credit easing. In mid-December, it paid a fee of $1.6 million to lenders to consent to amendments of both its first lien term loan and revolving credit agreement.