With creditors knocking, Beazer seeks court's help
Atlanta-based Beazer Homes appears to be struggling to avert bankruptcy. Atlanta asking that the court prevent its creditors from calling for immediate repayment of about $1.3 billion in loans. The creditors' move was prompted by Beazer's delay of its quarterly financial report, but the company says creditors are invoking a technicality to trigger a big payday. "The motivation for this effort is clear," states Beazer's complaint against U.S. Bank National Association. "Many of the noteholders, including various hedge funds and other opportunistic investors, have purchased Beazer's bonds at depressed prices in the market and are now improperly seeking to secure a windfall by demanding accelerated repayment in full."

More bad news for Beazer
The Atlanta homebuilder issued the latest in a steady trickle of bad news Wednesday evening, conceding for the first time the existence of "certain evidence" that its mortgage operation violated federal lending rules.The company also said "negative publicity" about its conduct is scaring away potential homebuyers, suppliers and even some employees -- and that it is increasingly difficult for Beazer to hire qualified replacements...The company's problems began with a Charlotte Observer series charting problems with the company's aggressive sales tactics.

Beazer: Mistakes possible in filings
The Atlanta homebuilder blamed its former chief accounting officer, saying he may have "caused" the wrong numbers to be reported. The disclosure may deepen concern about Beazer's financial health. The company already faces a federal criminal investigation of its mortgage practices, and a formal inquiry on unspecified issues by the Securities and Exchange Commission... Michael Rand, the former chief accounting officer, was fired in June after the company said its internal investigation found he had attempted to destroy documents in violation of corporate policies.

Fall of the House of Beazer
The homebuilder is under suspicion for steering buyers to homes in North Carolina that they couldn't afford. The FBI is conducting an informal inquiry into whether low-income buyers were issued mortgages based on their incomes rising in the future. The Federal Housing Administration prohibits such loans from being granted. This is not the first time Beazer has knocked down one of its executives this year. In February it fired its general counsel for a violation of company ethics regarding a "pattern of personal conduct." Yet this is far more troubling, as it certainly lends credence to the appearance of impropriety. According to The Charlotte Observer, which broke the original story,..