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03/17/07
Mortgage lender can’t pay creditors
Filed under: General, Mortgages
Posted by: Lillian Wong @ 10:57 am

New Century Financial Corp., among the biggest subprime lender in the country, said it doesn’t have the cash to pay creditors who are demanding their money, increasing speculation that the company will go bankrupt. The New York Stock Exchange halted trading of New Century on Monday morning while it ponders whether to keep listing the company’s securities in light of the liquidity problems. New Century said in a federal filing that it doesn’t have funds to give to lenders including Morgan Stanley, Citigroup Inc. and Goldman Sachs Group Inc. The creditors want New Century to repurchase all outstanding mortgage loans they financed.  More…

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