Trustee Attacks New Century's Disclosure Statement

Law360, New York (March 4, 2008, 12:00 AM EST) -- A U.S. trustee has attacked New Century Holdings Inc.'s Chapter 11 plan, joining a number of the bankrupt mortgage lender's creditors in saying the plan doesn't provide creditors with sufficient information for a vote.

U.S. Trustee Kelly Stapleton said that the plan, filed on Feb. 2, gave a “truncated” account of a special examiner's report, filed in January, that said New Century may have misled investigators regarding its post-petition cash collateral use.

“The plan proponents should summarize and detail the examiner’s key findings regarding the cash...
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