William Lyon Homes misses Oct. 1 interest payment on 10¾% senior notes

By Caroline Salls

Pittsburgh, Oct. 4 - William Lyon Homes, Inc. did not make the $7.49 million interest payment due Oct. 1 on its 10¾% senior notes due 2013, according to an 8-K filed with the Securities and Exchange Commission.

The company said there is $138.76 million of the notes outstanding.

William Lyon Homes said it plans to take advantage of the 30-day grace period for making the payment. If the payment is not made by Oct. 31, the notes could be accelerated.

Acceleration of the notes could also constitute an event of default under the terms of the indentures governing the company's $144.5 million of other outstanding senior notes, as well as under a $206 million senior secured term loan agreement and a separate $9 million loan agreement.

William Lyon is a homebuilder based in Newport Beach, Calif.

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