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Subprime Lender NovaStar Brings Up B-Word

Law360 (November 16, 2007, 12:00 AM EST) -- Struggling with the extreme turbulence in the debt market, subprime mortgage lender NovaStar Financial Inc., has warned that it may eventually be forced to file for bankruptcy protection.

Kansas City, Mo.- based NovaStar owes $83.9 million in debt and $11.8 million in fees to Wachovia Corp. and is struggling to pay it back.

The company said it already isn't in compliance with a covenant in its financing agreement with Wachovia, but that the bank had granted NovaStar a waiver – pushing back the deadline to Nov....
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