TECHNICAL OLYMPIC S.A.
Response to the Athens Exchange
In response to the Athens Exchange letter with protocol reference number 43638/29.10.2007 regarding articles for the current status of the subsidiary company of TECHNICAL OLYMPIC in USA, TOUSA, and in order to thorough inform the investment community, the company states the following:
The negative TOUSA results are due to the unforeseen and of substantial magnitude recession in the US housing market, whose future course is evidently neither controlled from TOUSA nor is possible to be projected with certainty. For the treatment of this situation, the subsidiary company TOUSA has recently proceeded to the global settlement of its debts with all participants in the TRANSEASTERN JV, with Citigroup, as well as to the merger with absorption of the Joint Venture.
The efforts of the management of TOUSA are focused know on the treatment of the hazards from the negative coincidence in the US housing market, through certain balance sheet initiatives such as the sale of non strategic assets, the trimming down of expenditures as well as the effective management of its assets. It is for this reason that, on October 8th TOUSA announced the appointment of Lazard Freres & Co. LLC preeminent financial advisory and asset management firm. All the above have been officially announced by both TOUSA Inc and TECHNICAL OLYMPIC SA management.
It is noted that parent company TECHNICAL OLYMPIC SA has no commitments of guarantee towards its subsidiary TOUSA.
In addition, TECHNICAL OLYMPIC SA is active in the construction sector through its subsidiary MOCHLOS SA, which is listed in the ATHEX, performing a stable growth course both in Greece as well as in the broader area of South Eastern Europe and reports positive results. Furthermore, the company through its subsidiaries is also active in the sectors of tourism (PORTO CARRAS), wind energy and construction and operation of marinas etc. The Company strategic goal has been and still remains to be active in a diverse number of independent growth sectors as well as in different geographic regions in order to diversify away the operating risk in time horizon. It is consequently evident that regardless of the subsequent course of events in the activities of the subsidiary TOUSA, the group will continue to operate unimpeded.
It is noted that TECHNICAL OLYMPIC has paid the largest part of its debt using the proceeds of the recent share capital increase and the current outstanding debt amounts to ? 4.0 mil. without any pledge on its fixed assets.
The effect of the US housing market crisis, whatever it might be, will appear at the nine month 2007 financial statements of TOUSA and TECHNICAL OLYMPIC, which will be timely published, according to the statutory provisions of the respective legislations, as it is uninterruptedly been done up to day.
In any case, the company will timely inform the investment community for any further development that may occur either in the subsidiary company TOUSA Inc, after all management actions are completed, or in the parent company TECHNICAL OLYMPIC whose announcements follow those of TOUSA, as the latter is listed in the New York Stock Exchange NYSE and abides by the US disclosure regulation, which the company is scrupulously following.
The negative TOUSA results are due to the unforeseen and of substantial magnitude recession in the US housing market, whose future course is evidently neither controlled from TOUSA nor is possible to be projected with certainty. For the treatment of this situation, the subsidiary company TOUSA has recently proceeded to the global settlement of its debts with all participants in the TRANSEASTERN JV, with Citigroup, as well as to the merger with absorption of the Joint Venture.
The efforts of the management of TOUSA are focused know on the treatment of the hazards from the negative coincidence in the US housing market, through certain balance sheet initiatives such as the sale of non strategic assets, the trimming down of expenditures as well as the effective management of its assets. It is for this reason that, on October 8th TOUSA announced the appointment of Lazard Freres & Co. LLC preeminent financial advisory and asset management firm. All the above have been officially announced by both TOUSA Inc and TECHNICAL OLYMPIC SA management.
It is noted that parent company TECHNICAL OLYMPIC SA has no commitments of guarantee towards its subsidiary TOUSA.
In addition, TECHNICAL OLYMPIC SA is active in the construction sector through its subsidiary MOCHLOS SA, which is listed in the ATHEX, performing a stable growth course both in Greece as well as in the broader area of South Eastern Europe and reports positive results. Furthermore, the company through its subsidiaries is also active in the sectors of tourism (PORTO CARRAS), wind energy and construction and operation of marinas etc. The Company strategic goal has been and still remains to be active in a diverse number of independent growth sectors as well as in different geographic regions in order to diversify away the operating risk in time horizon. It is consequently evident that regardless of the subsequent course of events in the activities of the subsidiary TOUSA, the group will continue to operate unimpeded.
It is noted that TECHNICAL OLYMPIC has paid the largest part of its debt using the proceeds of the recent share capital increase and the current outstanding debt amounts to ? 4.0 mil. without any pledge on its fixed assets.
The effect of the US housing market crisis, whatever it might be, will appear at the nine month 2007 financial statements of TOUSA and TECHNICAL OLYMPIC, which will be timely published, according to the statutory provisions of the respective legislations, as it is uninterruptedly been done up to day.
In any case, the company will timely inform the investment community for any further development that may occur either in the subsidiary company TOUSA Inc, after all management actions are completed, or in the parent company TECHNICAL OLYMPIC whose announcements follow those of TOUSA, as the latter is listed in the New York Stock Exchange NYSE and abides by the US disclosure regulation, which the company is scrupulously following.