New Century Financial Corp. - Subprime Lender
2007-03-08
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It has been a rapid and comprehensive downward spiral for New Century since announcing after-hours on February 7, 2007 that it would delay reporting due to the need to restate 2006 earnings. The revelations that came out with this announcement engendered a flurry of shareholder class-action lawsuits (11, by my last count) alleging securities manipulation.
As more details emerged, the downgrades came, the stock plunged more, and criminal probes were initiated. By the end, it had been revealed that the company was engaged in financial subterfuge the likes of which would have made Andy Fastow blush.
Today, New Century's funders drove the final dagger in, and the company was finally forced to halt its lending operations. Stay tuned—certainly more details will emerge, and something will need to be done with the company's employees, platform, and portfolio.
Update, April 2nd: New Century has formally declared bankruptcy.
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.