DOJ Asks For Trustee In New Century Case

Law360, New York (April 17, 2007, 12:00 AM EDT) -- The U.S. Department of Justice asked a bankruptcy court Tuesday to appoint a trustee to oversee subprime lender New Century Financial Corp.’s Chapter 11 case instead of the company’s current management.

U.S. Trustee Kelly Beaudin Stapleton submitted the request to the U.S. Bankruptcy Court for the District of Delaware, requesting the appointment of a trustee or, alternatively, an examiner.

Stapleton said disclosures New Century made earlier this year, which eventually led to the company’s bankruptcy filing, revealed that the management had failed to fulfill its fiduciary...
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