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Dont have any of this stock, but was wondering if i should. will the common shores b cancelled? will i b wasting my money?
Rabbi,
Looks like shareholders may get some...
don't know much any longer. good luck.
i sold out after the last press release and quit following the stock. zero to common shareholders.
What is going to happen at the hearing?
Hearing Information:
FRIDAY, AUGUST 06, 2010 10:30 AM CRT#2, 6TH FL.
Proceedings: Hearing Held.
Agenda Items:
#1 throught # 6 - Adjourned to 9/8/10 @ 9:30 a.m.
#7 - Certification of Counsel filed and Order signed
#8 - Certification of Counsel filed and Order signed
# 9 - Motion denied - Order due under Certification of Counsel
#10 - Continued to 9/8/10 @ 9:30 a.m.
#11 - Continued to 9/8/10 @ 9:30 a.m.
#12 - Continued to 9/8/10 @ 9:30 a.m.
#13 - Continued to 9/8/10 @ 9:30 a.m.
#14 - Continued
#15 - Motion granted - Order signed
#16 -Certification of Counsel filed and Order signed
#17 - Adv. Proc. No. 10-51083 - status conference held - limited discovery to go forward
Hearing Outcome:
http://www.orleanshomesreorg.com/pdflib/38_51083.pdf
Matters:
http://www.orleanshomesreorg.com/pdflib/37_51083.pdf
no news yet on today's hearing as far as I know
http://news.google.com/news/search?aq=f&pz=1&cf=all&ned=us&hl=en&q=orleans+homebuilders+bankruptcy
Scheduled Hearings - August 6, 2010 at 10:30 a.m. (Eastern Time)
•Fourth Omnibus Hearing [Docket No. 80]
•Pretrial Conference in NVR, Inc. v. Orleans Homebuilders, Inc. (Adv. Pro. No. 10-51083) [Docket No. 2]
•Motion of Laura J. Rosquist for Relief from Stay Under Section 362 of the Bankruptcy Code [Docket 539]
•Joseph & Irene Bordowksi's Motion for Relief from Automatic Stay [Docket No. 845]
•Debtors' Motion for an Order (a) Enforcing the Automatic Stay, (b) Awarding Actual Damages, Costs, Attorney's Fees, and Punitive Damages, and (c) Holding Dinaso & Sons Building Supply Company in Civil Contempt [Docket No. 903]
•Motion of G&I Greenwood FE LLC for Allowance and Payment of Administrative Expense Claim [Docket No. 916]
•Motion of Karen Lynne Cousin for Relief from the Automatic Stay [Docket No. 921]
•Motion of Byers Station Community Association for Relief from the Automatic Stay [Docket No. 1084]
•Debtors' Motion for Authority to Pay Pre-Petition Employee Compensation, Benefits, Reimbursable Business Expenses, and Other Obligations and Related Administrative Costs [Docket No. 8]
•Motion of Wm. M Young Company, Inc. for the Relief from the Automatic Stay [Docket No. 107]
•Debtors' Motion for an Order (a) Enforcing the Automatic Stay, (b) Awarding Actual Damages, Costs, Attorney's Fees, and Punitive Damages, and (c) Holding Eric's Nursery and Landscaping LLC in Civil Contempt [Docket No. 1110]
•Debtors’ Motion to Approve Order Clarifying Home Sales Procedures Established by Home Sales Order in Light of Claims Bar Date [Docket No. 1635]
•Notice of Hearing of Motion of All Steel Supply, Inc. for Relief from the Automatic Stay [Docket No. 1670]
http://www.orleanshomesreorg.com/hearings.php3
I recd. in mail claim form. Anyone else got it?
Scheduled Hearings
Hearing Date and Time Matters Scheduled to Be Heard
August 4, 2010 at 10:30 a.m.
(Eastern Time)
•Fourth Omnibus Hearing [Docket No. 80]
July 8, 2010 at 10:30 a.m.
(Eastern Time) •Third Omnibus Hearing [Docket No. 80]
•Application to Employ/Retain Cole, Schotz, Meisel, Forman & Leonard, P.A. as Conflicts Counsel to the Official Committee of Unsecured Creditors, Nunc Pro Tunc To April 28, 2010 [Docket No. 1037]
•Debtors' Motion for Authority to Pay Pre-Petition Employee Compensation, Benefits, Reimbursable Business Expenses, and Other Obligations and Related Administrative Costs [Docket No. 8]
•Motion of Wm. M Young Company, Inc. for the Relief from the Automatic Stay [Docket No. 107]
•Motion for Allowance and Payment of Administrative Expense Claim [Docket No. 916]
•Notice of Hearing Re-Notice of Debtors' Motion for an Order (a) Enforcing the Automatic Stay, (b) Awarding Actual Damages, Costs, Attorney's Fees, and Punitive Damages, and (c) Holding Eric's Nursery and Landscaping LLC in Civil Contempt [Docket No. 1110]
http://www.orleanshomesreorg.com/hearings.php3
Me also,pretty much spent by end of night from perusing court docs.on all my Q plays.Helluva lot of legalese to interpret.When i do figure it out,it does help me to trade the Bk stocks more than not following docs.
that stuff makes my head hurt, waay too much information to figure out unless you know the parties involved and can figure it all out.
Thanks for the info!
no, i think it was maybe premature capitulation, the debt holders decided to stop the BK
http://www.orleanshomesreorg.com/maincase.php3
Look at all the legal paper filed just today
So the reorg is a smokescreen?
i think their plan is to sell off the company in pieces
http://www.orleanshomesreorg.com/
Don't be surprised if this thing slowly rises over the next few months,with new housing turning around they could emerge and become a player in the construction field again.I worked as sub for Ryan homes,Orleans and Beazer.Why cancel APA?They must feel they can make more and survive by reorganizing.Checkout Beazer homes saga,might happen here,low of .25 in March of 09.No bk but was narrowly avoided.
I wondered if there wasn't a breakup fee.
NVR Sues Orleans Homebuilders Over Failed Takeover Bid-Reuters
Tuesday 06/01/2010 12:36 PM ET - Dow Jones News
Related Companies
Symbol Last %Chg
NVR 686.21 0.14%
OHBIQ 0.18 0.00%
As of 1:33 PM ET 6/1/10
DOW JONES NEWSWIRES
Builder NVR Inc. (NVR) sued bankrupt rival Orleans Homebuilders Inc. (OHBIQ) for breach of contract and sought to recover termination fees related to a failed takeover bid, according to court papers, Reuters reported Tuesday.
In its lawsuit, filed in a Delaware court on Friday, NVR also said it "has been, and remains, a ready, willing and able purchaser" of Orleans Homebuilders' assets.
NVR had offered to buy substantially all the assets of Orleans Homebuilders for $170 million, in April but Orleans Homebuilders later rejected the proposal and decided to pursue a reorganization plan with the support of its senior lending group.
Orleans Homebuilders was not immediately available for comment.
NVR said it spent a considerable amount of money in putting together an offer for Orleans and the floor value it set in its stalking-horse bid would form the basis of future reorganization plans.
Bensalem, Pa.-based Orleans Homebuilders, which operates mainly in the eastern U.S., filed for bankruptcy protection in March after defaulting on a credit facility.
The company's Alambry Funding mortgage services unit was not part of the bankruptcy filing.
-Dow Jones Newswires; 212-416-2900
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/nae/al?rnd=qxnoRcpIIJglWfz4%2F4RJAg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
06-01-10 1236ET
Copyright (c) 2010 Dow Jones & Company
How do you buy this stock? No sellers and trades by appointment only....??
There was some news yesterday. The horse quit stalking.
Orleans Homebuilders, Inc. to Pursue Negotiation of a Plan of Reorganization with Support of its Senior Lenders, Terminates Asset Purchase Agreement with NVR, Inc. and Cancels May 21, 2010 Hearing
PR Newswire
BENSALEM, Pa., May 19
BENSALEM, Pa., May 19 /PRNewswire-FirstCall/ --
Orleans Homebuilders, Inc. (the "Company", or "Orleans") (Pink Sheets: OHBIQ), which develops, builds and markets high-quality single-family homes and townhouses and whose operations in Pennsylvania and New Jersey date back more than 90 years, announced today that its recent discussions with its senior lending group have resulted in an agreement to pursue negotiation of a plan of reorganization with the support of the Company's senior lending group. As a result, the Company has terminated the previously announced Asset Purchase Agreement with NVR, Inc. Additionally, the Company has cancelled the hearing scheduled for May 21, 2010 in the United States Bankruptcy Court (the "Court") for the District of Delaware on its motion for, among other things, establishment of bidding procedures with respect to the purchase of substantially all of the assets of the Company.
Orleans currently anticipates that it will file a plan of reorganization with the Court in late summer and would hope to emerge from bankruptcy in late fall. The Company emphasizes that there can be no assurances as to the timing, contents or the outcome of any plan of reorganization or the Company's potential emergence from bankruptcy.
Mitchell B. Arden, a Managing Director and Shareholder of Phoenix Management who has been serving as Orleans' Chief Restructuring Officer since March 4, 2010, stated: "Over the past several weeks, the Company has been in active dialogue with a number of parties regarding its strategic options. It is clear from these discussions that pursuing a plan of reorganization appears to be the best course of action for the Company and its constituents. As part of this process, and before we prepare and file the Company's plan, we believe that we will be able to restart homebuilding even for those units under contract on which construction has not yet begun. At the same time, we should be able to reinitiate sales and marketing efforts on new homes. This is a significant step forward for our many customers and contractors who have been waiting patiently for the Company to move in this direction. We hope to have the necessary financial support to undertake these new construction and sales efforts in a few weeks.
"The option to pursue a plan of reorganization means that the Orleans name and its operations may be preserved for the benefit of our people and the communities in which we work. We appreciate the on-going support of our lenders, employees, customers, vendors and contractors. Their collective willingness to work with us during this critical time has provided us with the opportunity to pursue a plan that better suits the needs and interests of all parties. The details of the reorganization will be developed as we continue to work with our creditors. On a personal note, I wish to express my gratitude to the Company's bankruptcy counsel, Cahill Gordon & Reindel LLP, as well as corporate counsel from Blank Rome LLP, all of whom have worked tirelessly to help us define this renewed direction for Orleans."
The Company and most of its operating subsidiaries filed voluntary petitions to commence the Chapter 11 process on March 1, 2010. The filing does not include certain of the Company's subsidiaries, including its mortgage services subsidiary, Alambry Funding Inc., which provides mortgage brokerage services for customers and financial institutions but which does not underwrite any customer mortgages. All of the debtors in the Chapter 11 proceedings are borrowers under the Debtor-in Possession Loan Agreement entered into on April 21, 2010 (the "DIP Loan Agreement"). As security for the DIP Loan Agreement, the borrowers provided the lenders a security interest in all of their assets, with a few minor exceptions. The debtors' execution and delivery of the DIP Loan Agreement was approved by the Bankruptcy Court on April 16, 2010.
The Company is providing information about the reorganization at www.orleanshomesreorg.com .
About Orleans Homebuilders, Inc.
The Company serves a broad customer base including first-time, move-up, luxury, empty-nester and active adult homebuyers. The Company currently operates in the following 11 distinct markets: Southeastern Pennsylvania; Central and Southern New Jersey; Orange County, New York; Charlotte, Raleigh and Greensboro, North Carolina; Richmond and Tidewater, Virginia; Chicago, Illinois; and Orlando, Florida. The Company's Charlotte, North Carolina operations also include adjacent counties in South Carolina. The Company employs approximately 210 people.
Forward-Looking Statements
Certain information included herein and in other Company statements, reports and SEC filings is or may be forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning the anticipated filing of a plan of reorganization and the timing and contents thereof; potential emergence form Chapter 11 and the timing thereof; the potential preservation of the Company's name and operations; any sale of the Company or its assets; potential restructurings of the Company's liabilities; required bankruptcy court approvals; potential strategic transactions, including refinancing, reorganizations, recapitalization and sale transactions involving the Company; payments to trade creditors, employees, or customers; anticipated and potential asset sales; anticipated liquidity; and strategic transactions and alternatives including but not limited to the sale or restructuring of the Company. Such forward-looking information involves important risks and uncertainties that could significantly affect actual results and cause them to differ materially from expectations expressed herein and in other Company statements, reports and SEC filings. These risks and uncertainties include the Company's ability to operate under the terms of the DIP Loan Agreement; the Company's ability to obtain court approval with respect to motions relating to the bankruptcy filings; the ability of the Company to develop, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 proceeding; the ability of the Company to obtain and maintain normal terms with vendors and service providers and to maintain contracts critical to its operations; the ability of the Company to continue to attract buyers of its homes; the ability to continue normal business operations; the potential adverse impact of the Chapter 11 proceedings; the ability of the Company to attract, motivate and/or retain key executives and employees; access to liquidity; local, regional and national economic conditions; the effects of governmental regulation; the competitive environment in which the Company operates; fluctuations in interest rates; changes in home prices; the availability of capital; our ability to engage in a financing or strategic transaction; the availability and cost of labor and materials; our dependence on certain key employees; and weather conditions. In addition, the Company does not anticipate that it will make any distribution with respect to its currently outstanding equity securities, whether in connection with the bankruptcy proceedings or otherwise. Additional information concerning factors the Company believes could cause its actual results to differ materially from expected results is contained in Item 1A of the Company's Annual Report on Form 10-K/A for the fiscal year ended June 30, 2008 filed with the SEC and subsequently filed Quarterly Reports on Form 10-Q, as well as the Current Reports on Form 8-K and press releases filed with the Securities and Exchange Commission on August 14, 2009, October 6, 2009, November 5, 2009, December 9, 2009, December 23, 2009, February 1, 2010 February 19, 2010, March 3, 2010, March 11, 2010, March 22, 2010, April 20, 2010, April 22, 2010 and April 27, 2010.
SOURCE Orleans Homebuilders, Inc.
Orleans Homebuilders - OHBIQ
Short Interest (Shares Short) 309,900
Days To Cover (Short Interest Ratio) 4.7
Short Percent of Float 6.40 %
Short Interest - Prior 891,300
Short % Increase / Decrease -65.23 %
Short Squeeze Ranking™ -27
Shares Float 4,840,126
Total Shares Outstanding 19,089,141
% Owned by Insiders 74.70 %
% Owned by Institutions 16.10 %
Market Cap. $ 3,245,154
Trading Volume - Today 25,491
Trading Volume - Average 65,500
Trading Volume - Today vs. Average 38.92 %
http://www.shortsqueeze.com/?symbol=ohbiq
Only important thing to me is that this is a rock bottom offer - opening bid. This one may play for awhile. OHBIQ
wow charts look good
looks like this can go to 65-70 cent range today
spread tightening and pre-market activity. gl.
From my understanding it is very important that Orleans is keeping certain assets, which would equate to the fact that they are still in business, solvent via bk filing and auction, therefore still a publicly traded company. If all of their assets were auctioned, then the company would be closed....stock = zero. It looks to that their tax refunds may put them well above solvent + the assets they still own.
Somebody knew something from this and bought in yesterday....we shall see the truth in how she trades in the coming weeks imo.gl.
If OHBIQ gets more bids before the bidding process is over that would be great.How much are the assets they are keeping worth?
The APA specifically excludes the Company's two communities in New York State, which are anticipated to be sold separately by the Company and which represent approximately 200 lots and work-in-process units of the Company's total approximately 4,300 lots and work-in-process units. The assets to be sold under the APA generally also do not include the Company's community property management subsidiary; the Company's mortgage broker affiliate; income tax refunds and other cash balances; or the cash surrender value of the Company's corporate-owned life insurance policies.
The Company recently received a federal income tax refund of approximately $18.2 million related to the federal income tax return in respect of 2008, filed on December 18, 2009, which was as a result of the passing of government's five-year tax loss carry back provision in late calendar 2009. This refund was paid to lenders pursuant to the terms of the credit agreement. The Company also announced that it intends to immediately file an amended 2008 federal tax return, which would entitle it to receive an additional federal income tax refund of approximately $3.5 million. There can be no assurance as to the amount or timing of receipt of any such refund
Stalking-Horse Bid definition
What Does Stalking-Horse Bid Mean?
An initial bid on a bankrupt company's assets from an interested buyer chosen by the bankrupt company. From a pool of bidders, the bankrupt company chooses the stalking horse to make the first bid.
Investopedia explains Stalking-Horse Bid
This method allows the distressed company to avoid low bids on its assets. Once the stalking horse has made its bid, other potential buyers may submit competing bids for the bankrupt company's assets. In essence, the stalking horse sets the bar so that other bidders can't low-ball the purchase price.Filed Under:
http://www.investopedia.com/terms/s/stalkinghorsebid.asp
Huge spread on this thing. I tried adding by creeping up on the bid today, but no luck. Picked up teens earlier.
Any idea what will happen to commons after the sale?
That will be sweet if they get some more bidders with higher offers 170 million is the lowest bid they can get.
I think its hard to say what this means for the future of the company. The company is in auction because of chapter 11 so if it does get purchased, commons could transfer to a new company. Am I correct?
Stalking-Horse Bid...What Does It Mean?
What Does Stalking-Horse Bid Mean?
An initial bid on a bankrupt company's assets from an interested buyer chosen by the bankrupt company. From a pool of bidders, the bankrupt company chooses the stalking horse to make the first bid.
Investopedia Says
Investopedia explains Stalking-Horse Bid
This method allows the distressed company to avoid low bids on its assets. Once the stalking horse has made its bid, other potential buyers may submit competing bids for the bankrupt company's assets. In essence, the stalking horse sets the bar so that other bidders can't low-ball the purchase price.
Stalking-Horse Bid definition
What Does Stalking-Horse Bid Mean?
An initial bid on a bankrupt company's assets from an interested buyer chosen by the bankrupt company. From a pool of bidders, the bankrupt company chooses the stalking horse to make the first bid.
Investopedia explains Stalking-Horse Bid
This method allows the distressed company to avoid low bids on its assets. Once the stalking horse has made its bid, other potential buyers may submit competing bids for the bankrupt company's assets. In essence, the stalking horse sets the bar so that other bidders can't low-ball the purchase price.Filed Under:
http://www.investopedia.com/terms/s/stalkinghorsebid.asp
hello
Just noticed this ,so whats the deal do ,is it good thing or bad thing is this a good buy hear or is it done ?
Never heard of a stocking horse bid before bid before. What exactly does this mean for the company if is is approved? I'm bid sitting for now.
That spread is insane. .14 x .55
OHBIQ .17 news 170M stocking horse bid.Market cap 2.5 million
Estimated Market Cap
$2,577,034 as of Apr 13, 2010
Outstanding Shares
19,089,141 as of Feb 13, 2009
Number of Shareholders of Record
143 as of Oct 3, 2008
http://www.otcmarkets.com/pink/quote/quote.jsp?symbol=ohbiq
The APA specifically excludes the Company's two communities in New York State, which are anticipated to be sold separately by the Company and which represent approximately 200 lots and work-in-process units of the Company's total approximately 4,300 lots and work-in-process units. The assets to be sold under the APA generally also do not include the Company's community property management subsidiary; the Company's mortgage broker affiliate; income tax refunds and other cash balances; or the cash surrender value of the Company's corporate-owned life insurance policies.
The Company recently received a federal income tax refund of approximately $18.2 million related to the federal income tax return in respect of 2008, filed on December 18, 2009, which was as a result of the passing of government's five-year tax loss carry back provision in late calendar 2009. This refund was paid to lenders pursuant to the terms of the credit agreement. The Company also announced that it intends to immediately file an amended 2008 federal tax return, which would entitle it to receive an additional federal income tax refund of approximately $3.5 million. There can be no assurance as to the amount or timing of receipt of any such refund.
Orleans Homebuilders Announces Execution of Definitive 'Stalking Horse' Asset Purchase Agreement With NVR, Inc.
Date : 04/14/2010 @ 1:29AM
Source : PR Newswire
Stock : Orleans Homebuilders (OTC) (OHBIQ)
Quote : 0.135 0.0 (0.00%) @ 2:05AM
Orleans Homebuilders Announces Execution of Definitive 'Stalking Horse' Asset Purchase Agreement With NVR, Inc.
Orleans Homebuilders Announces Execution of Definitive 'Stalking Horse' Asset Purchase Agreement With NVR, Inc.
PR Newswire
BENSALEM, Pa., April 14
BENSALEM, Pa., April 14 /PRNewswire-FirstCall/ --
Orleans Homebuilders, Inc. (Pink Sheets: OHBIQ) ("Orleans" or the "Company"), which develops, builds and markets high-quality single-family homes and townhouses and whose operations in Pennsylvania and New Jersey date back more than 90 years, announced that its Board of Directors has approved, and yesterday, the Company executed an asset purchase agreement ("APA") with NVR, Inc. ("NVR" or the "Purchaser") for an initial "stalking horse bid" for substantially all of the assets of the Company. The Company confirmed that it has received the cash deposit required under the APA. The Company also filed a motion with the U.S. Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") seeking orders to approve the APA as well as the auction and bidding procedures described herein.
Under the APA, NVR would acquire substantially all of the Company's land, work-in-process home construction and intangible assets for communities in each of the Company's existing regions for an aggregate purchase price of $170.0 million, subject to certain working capital and other adjustments, as noted below.
More specifically, the APA provides for the acquisition of substantially all of the Company's assets, including land, lots, work-in-process units under construction (spec homes, models, backlog homes and backlog contracts) at substantially all of the Company's currently active and future communities, plus acquisition of the Company's interests in joint ventures and other controlled interests in land, customer deposits, trademarks, and intangible assets (collectively, the "Acquired Communities" or the "Acquired Assets"). Under the APA, NVR will also assume certain specific liabilities, including the assumption or replacement of an aggregate of approximately $52.6 million of bank letters of credit and external surety and other performance bonds related specifically to the Acquired Communities.
The APA specifically excludes the Company's two communities in New York State, which are anticipated to be sold separately by the Company and which represent approximately 200 lots and work-in-process units of the Company's total approximately 4,300 lots and work-in-process units. The assets to be sold under the APA generally also do not include the Company's community property management subsidiary; the Company's mortgage broker affiliate; income tax refunds and other cash balances; or the cash surrender value of the Company's corporate-owned life insurance policies.
The APA also provides for the continued construction and closings of all homes currently under construction in the Acquired Communities. The Company and NVR currently intend to honor the backlog contracts on homes under construction with homebuyers throughout the process, including escrowed customer deposits. Building will continue on homes under construction in all communities in the Company's 11 divisions in eight states, including on homes under construction in the New York communities not included in the APA, as well as the closing of home deliveries in all communities.
"This sale agreement fulfills the commitment we made at the outset of the Chapter 11 case to pursue potential purchasers of the Company," stated Garry P. Herdler, Executive Vice President and Chief Financial Officer of Orleans. "With the Court process, our M&A advisors and Phoenix Group encouraging other better and higher bids to emerge, the sale should culminate in a competitive auction to be held within a reasonable near-term timeframe that will allow us to provide some definitive resolution for customers, vendors and employees alike."
The $170.0 million purchase price under the APA is subject to certain defined working capital adjustments, which could be material, due primarily to home settlements and ongoing construction expenditures prior to closing. The working capital adjustments generally include reductions in the purchase price for the settlement of home closings that occur on or after March 1, 2010 and before the closing date of the APA, for certain reductions in the contract price for cancelled backlog units and for the sale of other spec and model home units at discounts above certain amounts, and certain other reductions. These working capital adjustments also generally include increases in the purchase price for home construction and certain other expenditures incurred on work-in-process units on or after March 1, 2010 and before the closing date.
The Company had previously announced the execution of a non-binding letter of intent relating to the sale of the Company; however, the Company was unable to complete the sale prior to the Chapter 11 filing on March 1, 2010. This non-binding letter of intent was not with NVR.
The Company recently received a federal income tax refund of approximately $18.2 million related to the federal income tax return in respect of 2008, filed on December 18, 2009, which was as a result of the passing of government's five-year tax loss carry back provision in late calendar 2009. This refund was paid to lenders pursuant to the terms of the credit agreement. The Company also announced that it intends to immediately file an amended 2008 federal tax return, which would entitle it to receive an additional federal income tax refund of approximately $3.5 million. There can be no assurance as to the amount or timing of receipt of any such refund.
Overview of Planned Bid Procedures, Sale Motion and APA Closing Conditions
The bid procedures and sale motion are subject to the approval of the Bankruptcy Court, with the hearing currently anticipated to be on May 4, 2010.
The Company and its mergers and acquisitions investment banker, BMO Capital Markets Corp., and its homebuilding mergers and acquisitions consultant, Lieutenant Island Partners LLC, are continuing to conduct an on-going auction process with other potentially interested bidding parties. The Company's newly-appointed Chief Restructuring Officer, with the assistance of PMCM, LLC, an affiliate of Phoenix Management Services, Inc., are coordinating ongoing Company sale efforts.
Under the sale motion filed by the Company, preliminary competing bids and corresponding cash deposits would be due by 12:00 noon on June 16, 2010 to be considered as a "qualifying bidder." All qualifying bidders will be invited to an anticipated court auction on June 23, 2010. Court approval of the auction results is tentatively scheduled for June 24, 2010, with closing of the sale on approximately June 29, 2010. The APA and the Company's proposed debtor-in-possession bank facility each contain certain provisions to extend these dates.
These bid procedures also generally require that a qualifying bidder must bid at least $178.0 million (on a comparable basis to the Asset Purchase Agreement) to be considered a "qualified bid" (without any conditions for due diligence or for financing), which is the aggregate of the existing purchase price under the APA, plus an aggregate of $4.4 million for a break-up fee and certain out-of-pocket expenses for NVR, plus an incremental bid on the Acquired Assets of $3.6 million. Subsequent incremental bids above $178.0 million by qualified bidders at the auction will be in increments of $1.0 million for the Acquired Assets.
The APA is subject to various customary closing conditions but is specifically not subject to any additional due diligence on the assets, liabilities and financial condition of the Company, including no further due diligence on the budgets for home construction, community site improvements, contingencies, overhead, unit counts, backlog and or on the anticipated material inventory impairments and other accruals related to fiscal periods after June 30, 2009 as well as to the restructuring, the Chapter 11 process, and this APA.
About Orleans Homebuilders, Inc.
Orleans Homebuilders, Inc. develops, builds and markets high-quality single-family homes, townhouses and condominiums. From its headquarters in suburban Philadelphia, the Company serves a broad customer base including first-time, move-up, luxury, empty-nester and active adult homebuyers. The Company currently operates in the following 11 distinct markets: Southeastern Pennsylvania; Central and Southern New Jersey; Orange County, New York; Charlotte, Raleigh and Greensboro, North Carolina; Richmond and Tidewater, Virginia; Chicago, Illinois; and Orlando, Florida. The Company's Charlotte, North Carolina operations also include adjacent counties in South Carolina. Orleans Homebuilders currently employs approximately 225 people.
About NVR, Inc.
NVR, Inc. is one of the nation's largest homebuilding and mortgage banking companies.
Forward-Looking Statements
Certain information included herein and in other Company statements, reports and SEC filings is or may be forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning the ability of the Company to enter into new financing arrangements, including without limitation debtor-in-possession financing; the ability to consummate a sale of the Company's assets; required bankruptcy court approvals for, among other things, the APA; participation of other bidders in the auction process; the ability of the auction process to provide some definitive resolution for customers, vendors and employees alike; anticipated auction and closing dates; adjustments to the purchase price in the APA as a result of working capital adjustments; the Company's anticipated sale of assets that are not subject to the APA; the satisfaction of the APA's closing conditions; the continued construction of homes, home closings and the honoring of customer deposits; and the anticipated income tax refunds. Such forward-looking information involves important risks and uncertainties that could significantly affect actual results and cause them to differ materially from expectations expressed herein and in other Company statements, reports and SEC filings. These risks and uncertainties include the Company's ability to enter into debtor-in-possession financing facility and to operate under terms of such financing; the Company's ability to obtain court approval for the APA, bid procedures and related matters; the Company's ability to obtain court approval of its financing arrangements and with respect to other motions relating to the bankruptcy filings; the ability of the Company to satisfy the closing conditions in the APA; the ability of the Company to obtain anticipated tax refunds; the results of the auction process; the ability of the Company to develop, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 proceeding; the ability of the Company to obtain and maintain normal terms with vendors and service providers and to maintain contracts critical to its operations; the ability of the Company to continue to attract buyers of its homes; the ability to continue normal business operations; the potential adverse impact of the Chapter 11 proceedings; the ability of the Company to attract, motivate and/or retain key executives and employees; access to liquidity; local, regional and national economic conditions; the effects of governmental regulation; the competitive environment in which the Company operates; fluctuations in interest rates; changes in home prices; the availability of capital; the ability to engage in a financing or strategic transaction; the availability and cost of labor and materials; our dependence on certain key employees; whether the Company will be able to provide any value to the Company's unsecured creditors or its equity holders; and weather conditions. Additional information concerning factors the Company believes could cause its actual results to differ materially from expected results is contained in Item 1A of the Company's Annual Report on Form 10-K/A for the fiscal year ended June 30, 2008 filed with the SEC and subsequently filed Quarterly Reports on Form 10-Q, as well as the Current Reports on Form 8-K and press releases filed with the Securities and Exchange Commission on August 14, 2009, October 6, 2009, November 5, 2009, December 9, 2009, December 23, 2009, February 1, 2010, February 19, 2010, March 3, 2010, March 11, 2010 and March 22, 2010.
SOURCE Orleans Homebuilders, Inc.
http://ih.advfn.com/p.php?pid=nmona&cb=1271247177&article=42366469&symbol=NO%5EOHBIQ
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