Hovnanian (HOV) is coercing bondholders to reduce the principal on their notes in exchange for...

|About: Hovnanian Enterprises, ... (HOV)|By:, SA News Editor

Hovnanian (HOV) is coercing bondholders to reduce the principal on their notes in exchange for higher interest, CreditSights' Frank Lee notes. "You're asking bondholders to take a big haircut - and if they don't take the haircut they don't have any claim in a bankruptcy." Shares are down 14% to $2.90.