Judge: No Committee for Ex-New Century Employees

Law360, New York (May 7, 2007, 12:00 AM EDT) -- A bankruptcy judge on Monday refused a bid by bankrupt subprime mortgage lender New Century Financial Corp.’s former employees to appoint a special committee to represent their interests.

Over 600 former workers argued that New Century’s bankruptcy threatened around $43 million they had put into a company trust, and since their interests were different from those of the Official Committee of Unsecured Creditors, they could not be adequately represented.

Martin Warren, a former manager from the lender’s Cambridge, MA offices testified in court that he had...
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