New Century Creditors Cut Funding
New Century Creditors Cut Funding
Excerpt:
New Century Financial Corp. said Monday all of its lenders have cut funding or announced their intent to halt financing after the subprime mortgage lender failed to make payments, pushing the company further toward bankruptcy.
''The company and its subsidiaries do not have sufficient liquidity to satisfy their outstanding repurchase obligations under the company's existing financing arrangements,'' New Century said in a filing with the Securities and Exchange Commission.
New Century, which lends money to prospective home buyers who have poor credit histories, uses short-term borrowings to finance mortgage loan originations and purchases. The company said there is no guarantee it will receive additional financing.
Comment: Keep an eye on this mess!
NEW <-------- check out the chart!
More on the subprime issue:
Subprime: The risk to Wall Street
New Century's woes deepen, spread
New Century Gets Default Claims, Says It Lacks Cash
Comment: Financial "house of cards"!
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