New Century's Liquidation Plan Nixed On Appeal

Law360, New York (June 17, 2009, 12:00 AM EDT) -- A federal judge has reversed last year’s decision to confirm a liquidation plan for bankrupt subprime lender New Century Financial Corp., ruling that the plan treats the claims of certain classes, including the beneficiaries of the company’s compensation and retirement plans, less favorably than others.

In a decision handed down Tuesday in the U.S. District Court for the District of Delaware, Judge Sue L. Robinson granted an appeal to reverse the approval of the liquidation plan filed by an ad hoc committee of beneficiaries of the...
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