Lender Asks Court To Liquidate NovaStar Unit

Law360, New York (January 24, 2008, 12:00 AM EST) -- American Interbanc Mortgage LLC is trying to force a NovaStar Financial Inc. subsidiary into Chapter 7 bankruptcy in order to collect the $48.9 million it won last year in an antitrust lawsuit.

The mortgage lender filed the petition for involuntary bankruptcy against Novastar Home Mortgage Inc. on Wednesday in the U.S. Bankruptcy Court for the Western District of Missouri.

NovaStar Financial is finding itself in increasingly dire financial straits.

The petition came just two weeks after Novastar announced it was ending all mortgage origination operations, slicing...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.