<a href="http://sec.gov/Archives/edgar/data/840216/000110465909032979/a09-11500_110q.htm">Ummm... according to their latest 10-Q</a>... 14 homes in three months would be a stretch. Yeah, they might have "sold" 14 homes, but they won't deliver 14 homes when their cancellation rate is currently 30%. Depending on when they sold the homes, and the cancellation rate they have, they might be lucky to deliver 8 of those homes. They even bitch about how bad financing is without ALT-A and subprime, they also bitch about how the gumberment isn't really helping them. Well f*ck you! As a taxpayer, you don't deserve my help for your own lack of economic fundamentals. You deserve to go BK and let a real builder take you over. Morons. They only have cash because they were able to write down the debt they couldn't repay IndyMac, and how they were able to renegotiate it for pennies on the dollar. Again, glad my tax dollars could subsidize your sorry ass. Now they are in default on their loan for their Lancaster project. WTF? Just file for BK already. You make John Laing look smarter every 10-Q.
Like I have always said, they are way too dependent upon Brightwater...
<em>During the first quarter of 2009 we also extended the maturity date on our senior secured revolving credit agreement from September 15, 2009 to June 30, 2010. However, based on current projections of Brightwater closings during the 12 months ending March 31, 2010, and due to the additional $25 million in loan repayments due on March 31, 2010, there is substantial doubt that we will be able to meet our debt obligations on March 31, 2010 from cash generated by operations. In addition, we do not expect to be able to repay the revolving loan by its maturity date of June 30, 2010. Therefore, during the fourth quarter of 2009 or the first quarter of 2010 we expect to negotiate revisions to our loan covenants and the timing of commitment reductions for our loans, and an extension of the maturity date of the revolving loan to accommodate the expected sales pace of the Brightwater project. There can be no assurance that we will be successful in negotiating any such amendments or extensions. In addition, we continue to examine financial and strategic alternatives to generate capital from a variety of sources, including, but not limited to, further restructuring of our debt, equity offerings and issuances of new debt. We cannot assure you that amended or future borrowings will be available to us in an amount sufficient to enable us to pay our indebtedness or to fund our other liquidity needs if we do not close escrow on enough homes during the 12 months ending March 31, 2010.</em>
They have already renegotiated their debt once before, they shouldn't be able to do it again, not after their failed promises. But... the banks they renegotiated with may no longer be there, or may be too constrained from their TARP/TALF borrowings. Good luck with that. Just file for BK or get foreclosed on, you know it is the only solution. You, Hearthside Homes/Cal Coastal/Brightwater are done, you were done when I first posted about you being done.
You haven't even sold 14 homes total in Brightwater... who are you fooling? It better not be the SEC. Maybe I should call them to ask if you are?
