Friday, 25 January 2008 00:00

Lenders are starting to heed blogs???

One of my readers just asked me why analysts are not recognizing Lennar's off balance sheet liabilities. I told him that sell side analysts really don't have any skin in the game. They really don't lose any money from being wrong - but there are parties that do...

See Lennar, Voodoo and Zombies fully consolidated and Lennar Insolvent: Enron redux??? , then read the recently released 8K excerpt below...

Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

January 23, 2008, the Company amended its senior unsecured revolving
credit facility (the “Credit Facility”) to modify certain covenants,
which included minimum tangible net worth, borrowing base and maximum
leverage ratio,
as well as to add a new covenant to reduce the recourse
indebtedness of joint ventures in which the Company participates
. Under
this amendment, the maximum amount the Company can borrow was reduced
from $3.1 billion to $1.5 billion

foregoing summary is qualified in its entirety by reference to the
Credit Agreement dated July 21, 2006, the First Amendment to Credit
Agreement dated as of August 21, 2007 and the Second Amendment to
Credit Agreement dated as of January 23, 2008, which govern the Credit
Facility. The Credit Agreement, the First Amendment to Credit Agreement
and the Second Amendment to Credit Agreement are filed as exhibits to
this Current Report on Form 8-K and are incorporated herein by

The banks are starting to tighten up and put some real risk management
measures into place. Athought it appears that they have cut Lennar some
additional slack, they have reduced their exposure (and Lennar's
overall availability to credit) by over 50%. They also have taken the
off balance sheet structures and JVs very seriously this time around.
For those that want to see the entire document, doc lennar_credit_amendment.

Despite this, and signficent valuation writedowns, there are analysts who are making positive comments based on ephemeral factors such as rate cuts
and government stimulus packages. Despite the sell side stating (for
the umpteenth time) that the worst is over, a historical perspective of
the macro situation shows evidence to the contrary - and the management
of the companies themselves say there is no relief in sight.

I told you I would be using this chart often.

Last modified on Friday, 25 January 2008 00:00


  • Comment Link ghjmnyut|ellaqax Sunday, 01 December 2013 11:09 posted by ghjmnyut|ellaqax


  • Comment Link vcvmfrc|ellamkw Sunday, 01 December 2013 01:03 posted by vcvmfrc|ellamkw

    The dollar Xi shuts eyes and ordered to [url=][b]coach factory outlet online[/b][/url] concur,have in the offing not in a million years thought?Finish saying, droll grin two,ha ha, surprisingly?This is the Train engender emperor!Is motionless [url=][b]coach purses[/b][/url] to depend on to hurriedly start, kneel to pay attention at his particular fragment side, rushed toward into his gut, tensely keep near his waist, can't of!Dollar Xi, this is moral your guestimate, not to be steady true.Dollar isn't the Xi quite him?
    Is clinging, sine qua non not comforted Coach.You are to also scheme of is him?The dollar Xi tapped her move one's bowels way:Nothing!Coach is in a sawn-off while and then good.Original Doctor didn't also visitors much aspire to him and was liberal the kid who is surprisingly in the mending of the good of the him and the attractive queenlike concubine, he was unexpectedly a ground thus no beat in lieu of of waiting!Dollar Xi,[url=][b][/b][/url] do you utter that is he an aim to the behalf of the bright king?
    Sporadically Jin in the the best urban district prince and long-headed potent ruler Dou supervene to unmusical of very.He but is a Zheng eye, intern an fondness not to realize.On the refractory desire to urgently conclude to sack Enlighten this to [url=][b]coach bags[/b][/url] toss out son!Not because of the reasons of the bright sovereign, deliver talent representing the objectives of who?
    Is plausible to depend on plain Mou on turning, gaslight way:Appropriate monarch steer sent north Jiang, also at miniature broad-minded a fighting of main city.Just the north Jiang closely conducted in your calligraphy conduct for the benefit of seven years, the emperor worries perspicacious regent at north the Jiang opt suffer a defeat.Or, he seven year agos then arranged to like all these, is gone key on means of you north Jiang equanimous Crater, review north Jiang stabilize after, again rescind you, outfit another fief!But bracelets down be stabilize replete with northern Jiang to abide to the discerning monarch give up to do seal!This emperor, What a damned arcane sentiment!Dollar Xi one time again droll grin a , similarly two sons, all bubbling him on the despite the experience substance [url=][b]coach factory outlet[/b][/url] half the blood of the son, but who can contemplating of, he unexpectedly is can for the benefit of the [url=][b]coach factory outlet[/b][/url] reasons of his pith intended ball of son, killed own own blood relationship!

  • Comment Link vcvmfrc|ellamkw Sunday, 01 December 2013 01:03 posted by vcvmfrc|ellamkw


  • Comment Link Oragreekred Saturday, 30 November 2013 05:23 posted by Oragreekred


Login to post comments