Ex-Employees Sue New Century Over Retirement

Law360, New York (June 22, 2007, 12:00 AM EDT) -- Former employees of bankrupt subprime lender New Century Financial Corp. have sued the company to protect their retirement trust from becoming part of its Chapter 11 estate.

New Century had maintained that the trust, funded mostly by money withheld from employees' salaries, is fair game for paying any of its creditors, and asked for it to be counted as part of its estate in a motion in April.

The company said the trust was part of a “top hat plan,” intended to provide high-level employees with...
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