Beazer
Homes USA, Inc. announced today that on September 6, 2007 it received
purported
default notices from U.S. Bank National Association, the trustee under
the
indentures governing Beazer’s outstanding 8 5/8% senior notes due May 2011; 8
3/8% senior notes due April 2012; 6 1/2% senior notes due November 2013;
6 7/8%
senior notes due July 2015; and 8 1/8% senior notes due June 2016. The
notices
allege that the Company is in default under the indentures because it
has not
yet filed with the Securities and Exchange Commission and delivered to
the
trustee its Quarterly Report on Form 10-Q for the quarterly period ended
June
30, 2007. The notices further allege that these defaults will become
events of
default under the indentures if not remedied within 60 days.
The
Company does not believe that it is in default under the indentures governing
its outstanding senior notes because the indentures require only that
Beazer
deliver to the trustee copies of Beazer’s SEC reports within 15 days after such
reports are actually filed with the SEC. Therefore, the Company believes
that
the notices of default are invalid and without merit.
As
previously announced, Beazer has filed an action in United States District
Court
in Atlanta, Georgia against the trustee. Beazer is seeking, among other
relief,
a declaration from the court against the trustee that the delay in filing
with
the SEC Beazer’s Form 10-Q for the third quarter does not constitute a
default under the applicable indentures and that the delay will not give
rise to
any right of acceleration on the part of the holders of the senior notes.
As
previously disclosed in the Company’s August 15, 2007 Form 8-K Current Report,
the Company’s delay in filing its third quarter Form 10-Q is the result of a
continuing independent internal investigation by the Audit Committee
of the
Company’s Board of Directors. The Company’s Audit Committee and its independent
counsel are working expeditiously to complete the internal investigation
as soon
as practicable. For a further explanation of the investigation and related
matters, including certain risks related to the alleged defaults under
the
indentures governing the Company’s senior notes, please refer to the Company’s
August 15, 2007 Form 8-K Current Report.
A
copy of
a press release issued today announcing receipt of the purported notices
is
attached hereto as exhibit 99.1.