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To: pcyhuang who wrote (7593)	3/2/2007 8:44:02 PM
From: John Pitera	of 33421

New Century says it will breach covenants---You were saying? -- By John Letzing, MarketWatch Last Update: 8:07 PM ET Mar 2, 2007 SAN FRANCISCO (MarketWatch) - New Century Financial Corp. said late Friday that it will likely breach a major lending covenant with its financial backers, becoming the latest sub-prime lender to slip into crisis. Shares of New Century (NEWnew century financial corp m com News , chart , profile , more NEW ) were down almost 25% in after-hours trading Friday, at about $11, after falling more then 7% in the regular session to $14.65. The company said in a regulatory filing that it expects it will not report at least $1 of net income for the two quarters ended Dec. 31, as stipulated in covenants with its lenders. New Century said it has received waivers from six of eleven of these lenders, though it has not received waivers from the remaining five. Some of these waivers will take effect when New Century gets similar waivers from the other lenders that have the two quarter net income covenant, the company said. New Century also said it is delaying the filing of its financial report for the year ended Dec. 31. The company has previously said it will restate financial results for the first and third quarters of the year to correct errors in the accounting and reporting of loan repurchase losses. John Letzing is a MarketWatch reporter based in San Francisco.

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