Tarragon (MM) (NASDAQ:TARR)
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From Jul 2019 to Jul 2024
Tarragon Corporation (NASDAQ: TARR) today announced that it has entered
into a restructuring support and forbearance agreement with the holders
of its $125 million of corporate-level unsecured subordinated notes.
The holders of the subordinated notes have agreed to support a financial
restructuring of Tarragon and to refrain from exercising any of their
rights and remedies under the terms of the subordinated notes through
June 30, 2009, subject to the terms and conditions of the agreement. As
part of the financial restructuring, the subordinated notes and
approximately $38 million of indebtedness held by an affiliate of
William S. Friedman, Tarragon’s Chairman and
Chief Executive Officer, and Robert P. Rothenberg, Tarragon’s
President, would be restructured and become obligations of a reorganized
Tarragon or an affiliated issuer.
The agreement also contemplates that Tarragon would enter into one or
more definitive agreements with a sponsor of an overall financial
restructuring plan. Under the overall plan, which may be implemented
through a voluntary petition for Chapter 11 bankruptcy protection, the
sponsor of the plan and certain Tarragon debtholders would receive
shares of reorganized Tarragon’s equity
representing a controlling interest in the reorganized company in
exchange for the assumption of indebtedness discussed above.
The Tarragon board of directors is being advised by Lazard in connection
with the board’s evaluation of alternatives
that may be available to Tarragon to maximize stakeholder value. These
alternatives may include, but are not limited to, a possible sale or
other recapitalization or restructuring of the Company, and all
available forms and sources of financing, property sales or other
strategic transactions, including the implementation of an overall
financial restructuring plan.
Forward-Looking Statements
Information in this press release includes "forward-looking statements"
made pursuant of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 that are based on management’s
expectations, estimates, projections and assumptions. Words such as
"expects," "anticipates," "intends," "estimates" and variations of these
words and similar expressions are intended to identify forward-looking
statements, which include but are not limited to statements regarding
Tarragon’s expectations regarding the terms
and conditions of a financial restructuring of the company. Actual
results and the timing of certain events could differ materially from
those projected or contemplated by the forward-looking statements due to
a number of factors, including, but not limited to: the ability of
Tarragon to negotiate satisfactory definitive agreements to implement an
overall financial restructuring plan and the satisfaction of any
conditions thereunder and under the restructuring support and
forbearance agreement with the holders of Tarrragon’s
subordinated notes; conditions in the homebuilding industry and
residential real estate and mortgage markets; risks associated with the
implementation of the financial restructuring; conditions in the capital
and financial markets generally; and general economic conditions,
interest rates and other risk factors outlined in Tarragon’s
SEC reports, including its Annual Report on Form 10-K for the year ended
December 31, 2007 and more recent Quarterly Reports on Form 10-Q.