Note 23 - Subsequent Events	12 Months Ended
Oct. 31, 2019
Notes to Financial Statements
Subsequent Events [Text Block]	23. Subsequent Events On November 5, 2019, K. Hovnanian commenced a private offer to exchange its 10.0% 2022 Notes and its 10.5% 2024 Notes for its newly issued 10.0% 1.75 Lien Notes due 2025 (the “1.75 Lien Notes”). In conjunction with this exchange offer, K. Hovnanian solicited consents to proposed amendments (the “ Proposed Amendments”) from the holders of such Notes to the indenture, dated as of July 27, 2017, among HEI, K. Hovnanian and the other guarantors parties thereto and Wilmington Trust, National Association, as trustee and collateral agent (the “Existing Indenture”), providing for, among other matters, the elimination of most of the restrictive covenants, certain of the affirmative covenants and certain of the events of default contained in such indenture. The Exchange Offers and the Consent Solicitations expired at 11:59 p.m., New York City time, on December 5, 2019. As of the expiration date of the Exchange Offers, K. Hovnanian had received tenders from holders of $23.2 million in aggregate principal amount, or 10.6%, of the 10.0% 2022 Notes and $141.7 million in aggregate principal amount, or 67.0%, of the 10.5% 2024 Notes, all of which were accepted for exchange, and had received the requisite consents in connection with the Consent Solicitation for the 10.5% 2024 Notes. K. Hovnanian did not receive the requisite consents in connection with the Consent Solicitation for the 10% 2022 Notes and therefore the 10.5% 2022 Notes will continue to be subject to the terms of the Existing Indenture without giving effect to the Proposed Amendments. On December 6, 2019, K. Hovnanian, HEI, as guarantor, the other guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent, entered into the Tenth Supplemental Indenture, dated as of December 6, 2019, amending and supplementing the Existing Indenture in respect of the Proposed Amendments, which amendments became operative on the settlement date of the Exchange Offer. On December 10, 2019, K. Hovnanian settled the exchange offer and issued $158.5 million aggregate principal amount of 1.75 Lien Notes and paid cash to exchanging holders in respect of accrued and unpaid interest on the 10.0% 2022 Notes and 10.5% 2024 Notes accepted for exchange to, but not including, the settlement date and, if applicable, amounts due in lieu of fractional amounts of 1.75 Lien Notes. The 1.75 Lien Notes were issued under an Indenture, dated as of December 10, 2019, among HEI, K. Hovnanian, the guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent (the “New 2025 Notes Indenture”). The 1.75 Lien Notes are guaranteed by HEI and the Notes Guarantors and the 1.75 Lien Notes and the guarantees thereof will be secured by substantially all of the assets owned by K. Hovnanian and the Notes Guarantors, subject to permitted liens and certain exceptions. The New 1.75 Lien Notes bear interest at 10.0% per annum and mature on November 15, 2025. Interest on the 1.75 Lien Notes is payable semi-annually on May 15 and November 15 of each year, beginning on May 15, 2020, to holders of record at the close of business on May 1 or November 1, as the case may be, immediately preceding each such interest payment date. The New 2025 Notes Indenture contains restrictive covenants that are substantially similar to those contained in the indentures governing the New Secured Notes. In addition, on December 10, 2019, K. Hovnanian, HEI, the other Notes Guarantors party thereto, Wilmington Trust, National Association, as administrative agent, and affiliates of certain investment managers (the “Investors”), as lenders, entered into a credit agreement (the “1.75 Lien Credit Agreement”) providing for $81.5 million of senior secured 1.75 lien term loans (the “1.75 Lien Term Loans”), that were borrowed by K. Hovnanian and guaranteed by the Notes Guarantors in exchange for $163.0 million of K. Hovnanian’s senior unsecured term loans due February 1, 2027 pursuant to an Exchange Agreement, dated December 10, 2019, by and among K. Hovnanian, HEI, the other Notes Guarantors party thereto and the Investors. The 1.75 Lien Term Loans and the guarantees thereof will be secured on a pari passu basis with the 1.75 Lien Notes by the same assets that will secure the 1.75 Lien Notes, subject to permitted liens and certain exceptions. The 1.75 Lien Term Loans will bear interest at a rate equal to 10.0% per annum and will mature on January 31, 2028. The 1.75 Lien Credit Agreement contains representations and warranties and covenants that are substantially similar to those contained in the Secured Credit Agreement.

23.

Subsequent Events

November 5, 2019,

K. Hovnanian commenced a private offer to exchange its

10.0%

2022

Notes and its

10.5%

2024

Notes for its newly issued

10.0%

1.75

Lien Notes due

2025

(the

“1.75

Lien Notes”). In conjunction with this exchange offer, K. Hovnanian solicited consents to proposed amendments (the “ Proposed Amendments”) from the holders of such Notes to the indenture, dated as of

July 27, 2017,

among HEI, K. Hovnanian and the other guarantors parties thereto and Wilmington Trust, National Association, as trustee and collateral agent (the “Existing Indenture”), providing for, among other matters, the elimination of most of the restrictive covenants, certain of the affirmative covenants and certain of the events of default contained in such indenture.

The Exchange Offers and the Consent Solicitations expired at

11:59

p.m., New York City time, on

December 5, 2019.

As of the expiration date of the Exchange Offers, K. Hovnanian had received tenders from holders of

$23.2

million in aggregate principal amount, or

10.6%,

of the

10.0%

2022

Notes and

$141.7

million in aggregate principal amount, or

67.0%,

of the

10.5%

2024

Notes, all of which were accepted for exchange, and had received the requisite consents in connection with the Consent Solicitation for the

10.5%

2024

Notes. K. Hovnanian did

not

receive the requisite consents in connection with the Consent Solicitation for the

10%

2022

Notes and therefore the

10.5%

2022

Notes will continue to be subject to the terms of the Existing Indenture without giving effect to the Proposed Amendments. On

December 6, 2019,

K. Hovnanian, HEI, as guarantor, the other guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent, entered into the Tenth Supplemental Indenture, dated as of

December 6, 2019,

amending and supplementing the Existing Indenture in respect of the Proposed Amendments, which amendments became operative on the settlement date of the Exchange Offer.

December 10, 2019,

K. Hovnanian settled the exchange offer and issued

$158.5

million aggregate principal amount of

1.75

Lien Notes and paid cash to exchanging holders in respect of accrued and unpaid interest on the

10.0%

2022

Notes and

10.5%

2024

Notes accepted for exchange to, but

not

including, the settlement date and, if applicable, amounts due in lieu of fractional amounts of

1.75

Lien Notes. The

1.75

Lien Notes were issued under an Indenture, dated as of

December 10, 2019,

among HEI, K. Hovnanian, the guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent (the “New

2025

Notes Indenture”). The

1.75

Lien Notes are guaranteed by HEI and the Notes Guarantors and the

1.75

Lien Notes and the guarantees thereof will be secured by substantially all of the assets owned by K. Hovnanian and the Notes Guarantors, subject to permitted liens and certain exceptions. The New

1.75

Lien Notes bear interest at

10.0%

per annum and mature on

November 15, 2025.

Interest on the

1.75

Lien Notes is payable semi-annually on

May 15

and

November 15

of each year, beginning on

May 15, 2020,

to holders of record at the close of business on

May 1

November 1,

as the case

may

be, immediately preceding each such interest payment date. The New

2025

Notes Indenture contains restrictive covenants that are substantially similar to those contained in the indentures governing the New Secured Notes.

In addition, on

December 10, 2019,

K. Hovnanian, HEI, the other Notes Guarantors party thereto, Wilmington Trust, National Association, as administrative agent, and affiliates of certain investment managers (the “Investors”), as lenders, entered into a credit agreement (the

“1.75

Lien Credit Agreement”) providing for

$81.5

million of senior secured

1.75

lien term loans (the

“1.75

Lien Term Loans”), that were borrowed by K. Hovnanian and guaranteed by the Notes Guarantors in exchange for

$163.0

million of K. Hovnanian’s senior unsecured term loans due

February 1, 2027

pursuant to an Exchange Agreement, dated

December 10, 2019,

by and among K. Hovnanian, HEI, the other Notes Guarantors party thereto and the Investors. The

1.75

Lien Term Loans and the guarantees thereof will be secured on a pari passu basis with the

1.75

Lien Notes by the same assets that will secure the

1.75

Lien Notes, subject to permitted liens and certain exceptions. The

1.75

Lien Term Loans will bear interest at a rate equal to

10.0%

per annum and will mature on

January 31, 2028.

The

1.75

Lien Credit Agreement contains representations and warranties and covenants that are substantially similar to those contained in the Secured Credit Agreement.