Posted on 07/04/2008 7:11:09 PM PDT by BJungNan
While the city of Desert Hot Springs continues to faithfully support one of its largest developers, D.R. Horton, the company’s lenders are growing less willing to prop up the housing industry giant.
And at least one supplier to the nation’s number one homebuilder says late payments by D.R. Horton contributed to it having to file bankruptcy.
D.R. Horton, a Texas-based builder, said on Tuesday its credit line with Wachovia Corp has been reduced to $1.65 billion after renegotiating the facility for the fifth time since 2005.
The company had to renegotiate yet again because it couldn't meet its obligations under the previous facility of $2.25 billion, said analyst Vicki Bryan of research firm Gimme Credit in an article published by Reuters.
"What people might not be realizing is that banks are really stepping back as far as D.R. Horton's access to credit," Bryan said in the article.
(Excerpt) Read more at desertvalleystar.com ...
whatta dump!
i’m told decades ago dhs was a nice working class alternative to the rich cities across the valley.
but the state of california released their ex-cons there and drugs control the city.
the last mayor was six months behind on his mortgage. not to mention missing monies.
so, a developer behind on its payments is appropriate to the city.
/s
Banks are reducing credit lines to everyone.
So true. Even companies that are performing according to their line of credit are having the banks lower their line limit. Banks are now doing quiet audits where they have lines of credit extended such as receivables based lending. If they make an evaluation that business climate is not great for the client (and the standard appears to be great, not just doing ok), then they pull in the line.
Credit is getting very tight for business. Banks are looking for safe areas to invest.
This goes back to the old saying..
If I owe the bank 1000 dollars and I can’t pay, I’m in trouble.
If I owe the bank 1 Billon dollars and I can’t pay, they’re in trouble.
“Banks are looking for safe areas to invest.”
Our banks are investing in computers that are rigged to show that customers are overdrawn when the aren’t, so they can charge overdraft fees.
That’s a bad sign to me, if they decide they must go after crumbs like that to make money instead of the usual investments.
So true
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