Clarification: Technical Olympic USA's responsibility for Transeastern debt

New York, Sept. 28 - Transeastern's bank debt is non-recourse to Technical Olympic USA, Inc., company officials told Prospect News on Thursday in response to comments from market sources.

In the company's most recent 10-K filed with the Securities and Exchange Commission it stated the following: "The third party debt is secured by the Transeastern JV's assets and ownership interests and is non-recourse to us, except that we have agreed to complete any property development commitments on the existing work in process at the time of closing in the event the Transeastern JV defaults and to indemnify the lenders for losses resulting from fraud, misappropriation and similar acts."

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