Beazer Hit with Default Notice, Stock Tumbles

| About: Beazer Homes (BZH)
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Beazer Homes USA Inc. said that it had received default notices from US Bank, a trustee of Beazer's senior notes, on Friday. Beazer whose been hit hard by the challenging housing conditions and two separate probes in its mortgage-origination business, said the default notices are "invalid and without merit." The company said that US Bank sent the default notices because Beazer has not reported its earnings report for the quarter ending July 30th. "The delay in the 10Q filing is a concern," Egan-Jones Ratings Co. commented in a research note. "Beazer needs to provide answers on its credit strength soon." The company said on August 15th that the delay was a result of the internal probes. It noted that it has previously never delivered a quarterly report late or missed a bond payment. Beazer's stock plunged on the news as it traded down 8.8% to $9.95 in midday trading on Friday.

Sources: Press Release, Reuters
Commentary: Beazer Skids, Denies Bankruptcy TalkAccounting Problems Plague Beazer Homes
Stocks/ETFs to watch: BZH. Competitors: KBH, LEN. ETFs: ITB, XHB

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