U.S. Trustee Objects To New Century Motion

Law360, New York (April 9, 2007, 12:00 AM EDT) -- A federal bankruptcy supervisor on Monday objected to New Century Financial Corp.’s attempt to pay a company $1 million in exchange for bid protection at the real estate investor’s Chapter 11 auction.

In her motion, U.S. Trustee Kelly Beaudin Stapleton listed a number of problems with New Century’s request to pay Greenwich Capital Financial Products Inc.

“Unfortunately, the debtors’ statement does not justify approval of bid protections,” the Beaudin said.

A bidder is entitled to protection if it can provide a research function and if it...
To view the full article, register now.