Oct. 1, 2009 (PR Newswire) --
RED BANK, N.J., Oct. 1 /PRNewswire-FirstCall/ -- Hovnanian Enterprises, Inc. (NYSE: HOV) (the "Company") announced that its wholly owned subsidiary, K. Hovnanian Enterprises, Inc. ("K. Hovnanian"), has amended its Offer to Purchase and Consent Solicitation Statement, dated September 21, 2009 (as it may be further amended from time to time, the "Statement"), in order to seek consents from the holders of its 11-1/2% Senior Secured Notes due 2013 (the "2013 Secured Notes") to an additional amendment to the Intercreditor Agreement dated as of May 27, 2008 (the "May 2008 Intercreditor Agreement"), among the Company, K. Hovnanian, certain of their respective subsidiaries, PNC Bank, National Association, Wilmington Trust Company, as trustee and collateral agent for the 2013 Secured Notes, and Wilmington Trust Company, as mortgage tax collateral agent, to increase the maximum amount of debtor-in-possession financing ("DIP Financing") that the trustee, collateral agent and mortgage tax collateral agent shall be deemed to have consented to on behalf of themselves and the holders of the 2013 Secured Notes to the amount that is consented to from time to time by the holders of the first lien debt being permitted pursuant to the consent.
Each of K. Hovnanian's previously announced tender offers (the "Tender Offers") in respect of its senior secured notes (including the 2013 Secured Notes) and certain series of its unsecured notes (collectively, the "Notes") will expire at 12:00 midnight, New York City time, on October 19, 2009, unless extended or earlier terminated (with respect to each Tender Offer, the "Expiration Date"). Holders of Notes must validly tender and not withdraw their Notes on or prior to 5:00 p.m., New York City time, on October 2, 2009, unless extended (with respect to each Tender Offer, the "Early Tender Date"), in order to receive the total consideration, including the applicable early tender consideration, for their Notes. Holders validly tendering their Notes after the Early Tender Date and on or prior to the Expiration Date will not be eligible to receive the early tender consideration. Notes tendered may be withdrawn at any time prior to 5:00 p.m., New York City time, on October 2, 2009, unless extended, but not thereafter.
The terms and conditions of Tender Offers and related consent solicitations, except as otherwise modified pursuant to this press release, remain the same.
K. Hovnanian has prepared a supplement (the "Supplement") to the Statement with respect to the additional amendment described above. The terms and conditions of the Tender Offers and related consent solicitations are described in the Statement, including the Supplement, and in the related Consent and Letter of Transmittal (the "Offer Documents"). K.
