TOUSA files for bankruptcy
Hollywood, Fla.-based home builder Technical Olympic USA (TOUSA) announced this week it has filed for bankruptcy protection.
TOUSA, which reported a more than $10 million loss in November, said it received support from more than 50 percent of its senior noteholders on a proposed plan for restructuring its equity and all its unsecured debt to include the bankruptcy filing.
The filing includes TOUSA Homes, Newmark Homes and entities that represent all their brands — Engle Homes, Newmark Homes, Fedrick, Harris Estate Homes and Trophy Homes.
“This action is necessary to reflect the realities of today’s home-building market,” said Antonio Mon, president and CEO of TOUSA. “Our core operations are solid, and our market position suggests a strong future for our company. We are focused on restructuring our balance sheet and we expect business to continue as usual.”
Citigroup Global Markets has agreed to provide the company with up to $150 million in debtor-in-possession financing.
The filing is just one part of the company’s restructuring agreement with its senior noteholders, who will receive substantially all of the common stock of the reorganized company.
At the date of the filing, TOUSA had approximately 2,500 homes in backlog. The company said it plans to continue home building uninterrupted during this process.
ProBuild names manufacturing head
ProBuild Holdings has announced the appointment of Lonnie Bernardoni as its new senior vp-manufacturing, where he will oversee the conpany’s component and millwork activities. He comes to ProBuild from Motorola, where he served as corporate vp-new product introduction.
Bernardoni’s 18-year tenure at Motorola also included stints as vp-supply China, manufacturing operations manager, plant manager and manufacturer process engineer at domestic and overseas plants.
ProBuild is the nation’s largest LBM chain, with more than 500 locations in 40 states.
Stanley Works announces strong fourth quarter
New Britain, Conn.-based Stanley Works reported fourth-quarter net earnings of $92.3 million, up 6.6 percent from $86.6 million from the same period last year. Net sales from the quarter were $1.16 billion, up 14.5 percent from $1.02 billion in last year’s fourth quarter.
For the year, the company had net earnings of $336.6 million, up 16.2 percent from $289.5 million in 2006. Net sales were $4.48 billion, up 11.6 percent from last year’s sales of $4.09 billion.
The company attributed the increase to organic growth, currency and acquisitions.
“2008 promises to be an equally, if not more, challenging year from an end-market perspective. Fortunately, we are entering the year with our portfolio in excellent shape and with the majority of our businesses exhibiting strong momentum,” said John Lundgren, chairman and CEO for the company.