Beazer Homes USA, No. 7 in the 2006 BUILDER 100, received another default notice from U.S. Bank National Association late Monday afternoon. This latest notice relates to convertible senior notes due in 2024 and comes on the heels of a Sept. 7 report by Beazer Homes of five other notices of default, which related to senior notes due between 2011 and 2016.
All notices allege that Beazer Homes is in default because the company has not filed its 10-Q with the Securities and Exchange Commission (SEC) for the period ending June 30.
"The Company does not believe that it is in default under the indenture governing its outstanding convertible senior notes," the Atlanta-based builder said in a press statement. "The indenture does not contain an express financial reporting covenant requiring that Beazer file periodic reports with the SEC or deliver to the trustee copies of Beazer's SEC reports within any prescribed time period. Therefore, the Company believes that this notice of default is invalid and without merit, as are the other notices of default previously delivered by the trustee."
The home builder announced Monday that it is filing an Amended Complaint For Declaratory Judgment And Injunctive Relief in an action pending in the United States District Court for the Northern District of Georgia, Atlanta Division against the trustees under the applicable indentures.
"Beazer is seeking, among other relief, a declaration from the court against the trustees that the delay in filing with the SEC Beazer's Form 10-Q for the third quarter does not constitute a default under the applicable indentures and that the delay will not give rise to any right of acceleration on the part of the holders of the senior notes," the company says.
The home builder and the U.S. Bank National Association have been at odds for the past month with Beazer suing the association in a bid to stop the bank from finding the company in default on $1.4 billion in loans.
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Learn more about markets featured in this article: Atlanta, GA.