Attached files
file | filename |
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8-K - ORLEANS HOMEBUILDERS INC | v182290_8k.htm |
EX-99.1 - ORLEANS HOMEBUILDERS INC | v182290_ex99-1.htm |
EX-10.2 - ORLEANS HOMEBUILDERS INC | v182290_ex10-2.htm |
EX-10.1 - ORLEANS HOMEBUILDERS INC | v182290_ex10-1.htm |
Exhibit
99.2
Contact:
|
The
Abernathy MacGregor Group, Inc.
|
Dan
Hilley, dch@abmac.com
|
|
(213)
630-6550; (888)
477-4319
|
FOR IMMEDIATE
RELEASE
Orleans
Homebuilders, Inc. Executes Debtor-In-Possession Credit Facility
Bensalem, Pa., April 22, 2010
–/PRNewswire-FirstCall/ — Orleans Homebuilders, Inc. (the “Company”, or
“Orleans”) (Pink Sheets: OHBIQ.PK), 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
it has executed a $120 million debtor-in-possession credit facility (“DIP Credit
Facility”) which will provide a $40 million revolving line of credit, including
up to $25 million of cash funding and up to $15 million of letters of credit
capacity. The Company intends to use the proceeds of the financing
for, among other things, its ordinary course business expenses, including
housing restarts and closings. The remaining $80 million of the DIP Credit
Facility represents a roll up of a portion of the pre-petition credit agreement
debt of certain of the pre-petition lenders.
Regarding
the approval and closing of the DIP Facility, 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: “I am very pleased that
we have reached this pivotal event in the tenancy of Orleans’ bankruptcy process
and would like to thank all of the Company’s employees, attorney’s, advisors,
and lenders who participated in the process of closing this final DIP
facility. This new financing provides Orleans with the ability to move
forward with its housing restarts and home closings and enables us to serve the
Company’s contractors, vendors, customers, and employees during this critical
time.”
The
Company and most of its operating subsidiaries filed voluntary petitions to
commence the Chapter 11 process on March 1 in the U.S. Bankruptcy Court for the
District of Delaware in Wilmington. 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 DIP Credit Facility. As security for the DIP
Credit Facility, 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 Credit Facility 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.
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 employs approximately 225
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 any sale of the Company or its assets; the ability of the
Company to enter into new financing arrangements, including without limitation
the DIP financing; required bankruptcy court approvals; potential restructurings
of the Company’s liabilities; any value that may be provided by the Company’s
unsecured creditors or its equity holders; payments on its 8.52% Trust Preferred
Securities and the Junior Subordinated Notes; potential strategic transactions,
including refinancing, 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 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 the DIP Credit
Facility; 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. 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.
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