Reports: New Century near bankruptcy
Last Update: 3/9/2007 12:55:51 PM
Reports: New Century near bankruptcy
IRVINE, Calif., Mar 9, 2007 (UPI via COMTEX) -- New Century Financial, the No. 2 U.S. subprime mortgage lender, may file for Chapter 11 bankruptcy protection, reports said Friday.
The Irvine, Calif., company appears nearly out of liquidity and has not been able to negotiate the financing and credit waivers it needs to stay in business, the CNBC cable network reported.
The network and The Wall Street Journal said New Century got some financing from one of its biggest creditors, investment bank Morgan Stanley.
But the company's mounting woes suggest it may be forced to file for bankruptcy protection from creditors if it cannot find a suitor or sell assets soon, the reports said.
A New Century spokeswoman would not comment on the possibility of a bankruptcy filing or asset sales.
The company, plagued by rising defaults on its subprime mortgage loans -- home loans made to borrowers with weak credit -- said Thursday it stopped accepting loan applications because some of its backers refused to provide access to financing.
Copyright 2007 by United Press International ********************************************************************** As of Monday, 03-05-2007 23:59, the latest Comtex SmarTrend(SM) Alert, an automated pattern recognition system, indicated a DOWNTREND on 10-19-2006 for NEW @ $37.84. For more information on Comtex SmarTrend Alert, contact your market data provider or go to SmarTrend is a registered trademark of Comtex News Network, Inc. Copyright 2004-2007 Comtex News Network, Inc. All rights reserved.
No comments:
Post a Comment