Technical Olympic USA, Inc. (TOUS)

[deadcat123]

I don't think TOUSA can file for Ch. 11 protection while their asset is greater than their liability. At the end of Sept 30, TOUSA still showed $48 mil in stockholder equity and no defaults on loan, so it gives TOUSA no reason to file for Ch. 11. Their main problems are to modify their loan convenents for (1) extremely high leverage and (2) NYSE delistments. I believe TOUSA has enough cash to get them thru this perfect storm in today's housing market until 2009. Their loans are not due until 2010.

Anyway, TOUSA's pps is trading at BK level. A lot of shorts are betting their farms on TOUSA filing for CH.11 before year ends. I just hope that the management can find a way to restructure their capital structure without going thru Ch. 11 court!