Banks Balk At New Century’s Foreclosure Proposal

Law360, New York (May 15, 2007, 12:00 AM EDT) -- HSBC Bank USA and Washington Mutual have objected to New Century’s motion for relief from its automatic stay, arguing that the company’s suggested protocol for handling foreclosure proceedings is unfair.

On Monday, HSBC Bank USA and Washington Mutual filed separate objections in the U.S. Bankruptcy Court for the District of Delaware, asking for the court to modify some of the provisions connected with the stay.

Under the Bankruptcy Code’s automatic stay provision, all actions against a company are halted when it files for Chapter 11 protection,...
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