Technical Olympic USA, Inc. (TOUS)

[Duffau]

Profit on Home Building and other things are going smoothly.

The new DIP financing of 135 million to 650 million has not been tapped yet but is needed as a cushion, so it will likely be extended too, I think. That's in spite of the company selling new homes at a value of 100 million a month, generating cash so that they are flush right now and proposing to pay down first lien in amount of 175 milion.

What concerns me is whether First Lien will have to pay the committee of unsecured creditors to sue them. It would really suck to know you have to pay the cost of someone to sue you, but that is what is probably going to happen. The amount is 800 million or so and the debt could go poof if the committee is successful.

Another concern is the fact that TOUSA has a business plan that they are keeping under seal. The pps of tousq.pk could be affected if the plan is published and that concerns me. But if the competitors could use the info to hinder the future profits of TOUSA, then I suppose I can live with the plan being kept secret. One thing I do know is that the secret plan has this company turning a profit and paying off all the debt. I just don't know how long that is going to take. Currently the company is ahead of the plan.