Solus and GSO Resolve Dispute over Hovnanian Enterprises’ Refinancing Transaction

Solus Alternative Asset Management LP (“Solus”) today issued the following statement regarding the decision to settle its dispute over the recent refinancing transaction involving GSO Capital Partners LP (“GSO”), the credit arm of Blackstone, and Hovnanian Enterprises, Inc. (NYSE:HOV):

“We are very pleased to have resolved this matter. Solus looks forward to working alongside other market participants, regulators, and ISDA to improve existing CDS documentation and enhance the integrity of the credit derivatives market.”

The terms of the settlement reached by Solus and GSO included an agreement by GSO to consent to the indenture amendments necessary to allow Hovnanian to make the interest payment that it did not make to its own subsidiary on May 1, 2018 prior to the expiration of the grace period, which Hovnanian has now done. GSO has also agreed not to support any future failure to pay events affecting Hovnanian.

Other terms of the agreement were not disclosed.

About Solus Alternative Asset Management

Solus Alternative Asset Management L.P. is a privately-held global investment manager that focuses on generating optimal risk-adjusted returns for a diversified group of public institutions, private entities and qualified clients across the world. Based in New York City, the firm specializes in investing in event-driven, distressed and special situation opportunities.

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