New Century Financial Corporation Sells
Carrington Capital Management received approval from U.S. Bankruptcy Judge Kevin J. Carey to buy New Century Financial for $184 million. This price is $50 million more than Carrington originally offered. New Century Financial is a subprime lender who at its peak employed about 6400. The sale of the company will allow 500 employees to retain their jobs.
“New Century bankruptcy lawyer Suzzanne Uhland of O’Melveny & Myers said the company will net about $150 million.
Approval came after Carrington, a Greenwich, Conn.-based hedge fund, convinced Wells Fargo Bank and Deutsche Bank units that it qualified to run the business.
New Century’s loan servicers collect and process mortgage payments on billions of dollars’ worth of home loans to consumers with bad credit.
Most of those loans are in securitization, or bundled loan, deals, in which major institutions have invested.”
The complete article can be found at:
http://www.forbes.com/feeds/ap/2007/05/21/ap3743848.html
Pam
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