William Lyon secures term loan waiver until July 19 for late filings

By Susanna Moon

Chicago, April 27 - William Lyon Homes subsidiary William Lyon Homes, Inc. amended its senior secured term loan agreement last Thursday to waive some potential defaults until July 19, according to an 8-K filing with the Securities and Exchange Commission.

The company said it has not yet filed its financial statements for the year ended Dec. 31, and technical defaults may exist under the loan agreement.

Under the waiver, the lenders waived potential defaults related to the minimum tangible net worth covenants and the possible failure to timely deliver financial statements.

The company announced on March 21 that it had been conducting and finalizing its non-cash impairment analysis in connection with its annual audit for 2010.

On March 30, William Lyon Homes said it needed more time to complete the financial statements and required audit to be included in the 10-K for the year ended Dec. 31 to reflect the impairment analysis.

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

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