New Century files for Chapt 11 Protection

Discussion in 'Stocks' started by 2ez, Apr 2, 2007.

  1. 2ez


    New Century Seeks Chapter 11 Protection
    Monday April 2, 11:52 am ET
    By Gary Gentile, AP Business Writer
    Subprime Lender New Century Files for Bankruptcy, Fires 3,200 Workers

    LOS ANGELES (AP) -- Subprime mortgage lender New Century Financial Corp. filed Monday for Chapter 11 bankruptcy protection, and said it would fire 3,200 workers, or 54 percent of its work force, to better position the company for a possible sale.
    Once the second-largest provider of subprime mortgages in the U.S. based on loan volume, New Century was the latest lender to fall on hard times amid a spike in mortgage defaults caused by borrowers unable to make payments.

    More than two dozen subprime lenders have shut down in recent months and others are scrambling to stay in business.

    New Century said it has agreed to sell its loan servicing business to Carrington Capital Management LLC and its affiliate for about $139 million, subject to the approval of the bankruptcy court.

    "The decision to pursue the sale of the company's assets and operations through the bankruptcy process was a difficult but appropriate decision for our board to make," president and chief executive Brad A. Morrice said in a statement.

    "This was a very hard step for me personally and clearly not the outcome I would have preferred," Morrice said.

    CIT Group and Greenwich Capital Financial Products Inc. have agreed to provide up to $150 million in working capital to facilitate the reorganization process, the company said.

    New Century has also agreed to sell certain loans and residual interest in some trusts to Greenwich Capital for $50 million.

    New Century, based in Irvine, filed the bankruptcy action in U.S. Bankruptcy Court for the District of Delaware. The move had been expected for several weeks.

    Last week, New Century said several of its lenders planned to sell their outstanding mortgage loans and use the proceeds to offset payment obligations by the company, while retaining the right to recover the difference.

    The company has signed consent agreements with several states and received cease-and-desist orders from others in recent weeks.

    The state agreements are intended to keep New Century from accepting new mortgage applications on grounds that it has violated state laws, including failing to fund mortgage loans after closing.
  2. wow..what a big god damn surprise....
  3. Their career site is still up...

    Our Values:

    The actions of New Century and each of its associates will be guided by our core values:

    Treat People with Respect
    Embrace Change
    Act with Integrity
    Common Sense
    Have Fun!

    We know that you have a life outside of work. Our benefits package can help enhance it.

    When you accept a position at New Century, we want you to feel supported at every level, both at work and in your daily life. That’s why we’re proud to offer our associates one of the most comprehensive benefits packages available in the industry today. Each of our benefit programs has been designed to give every associate the flexibility to choose the options that will best fit their individual or family needs.

    Our benefits include:

    Long Term Disability
    Supplemental Life Insurance
    Flexible Spending Accounts
    Company Stock Purchase Plan
    Paid Sick Time
    Paid Volunteer Hours
    Fitness Club Membership Discount
    Associate Referral Program
    Service Awards

    Short Term Disability
    Basic Life Insurance
    Employee Assistance Program
    401(K) Plan with Match
    Paid Vacation
    Paid Personal Time
    Rideshare Incentives
    Tuition Reimbursement
    Scholarship Program
  4. ElCubano


    i bought some at .77 .80 .85 .. sold at 1.00 and have half position left...
  5. ElCubano


    their she blows...loook out belowwwwwwwwww
  6. 2ez


    Hmmmm ?

    Trying to get a quote....

    what's the Symbol :confused:

    :D :D :D
  7. ElCubano


  8. buy some at 60 cents

    or where ever the bottom seems to be

    this will rebound later though

    NEWC will trade at $10 some day
  9. If it goes down below .70 tomorrow, I'm picking it up.

    I kinda of like FMT going into tomorrow at 6.57.
  10. ElCubano


    I dont think ull get that...and if you do you might not want it..peace
    #10     Apr 2, 2007