Legal Pressures Push New Century Into Ch. 11

Law360, New York (April 2, 2007, 12:00 AM EDT) -- After weeks of speculation, subprime lender New Century Financial Corp. filed a voluntary petition for Chapter 11 bankruptcy protection Monday, becoming yet another casualty of the faltering industry.

Irvine, Calif.-based New Century has asked the U.S. Bankruptcy Court for the District of Delaware for approval of $150 million in debtor-in-possession financing from the CIT Group and Greenwich Capital Financial Products, Inc. New Century has also asked for court approval of the sale of its servicing assets and of certain loans and interest.

New Century’s troubles mounted...
To view the full article, register now.