NEW-- ch 11---I think we had the right idea that the credit lines would get pulled, and NEW would implode...(see post I am responding too)
New Century falls on bankruptcy rumors-analysts
Thursday, March 08, 2007 1:14:36 PM (GMT-06:00)
Provided by: Reuters News
NEW YORK, March 8 (Reuters) - New Century Financial Corp. <NEW.N> shares fell as much as 34.1 percent Thursday on market speculation that the subprime mortgage lender would seek Chapter 11 bankruptcy protection, analysts said.
Laura Oberhelman, a spokeswoman for Irvine, California-based New Century, said the real estate investment trust does not comment on market rumors.
The rumors surfaced six days after New Century disclosed a criminal probe into securities trading and accounting, and said its survival might depend on getting help from its own lenders. Earlier Thursday, Greenlight Capital LLC, the REIT's second-largest shareholder, said its principal David Einhorn resigned on Wednesday night from New Century's board.
New Century shares fell $1.16 to $3.99 in afternoon trading, after earlier falling to $3.40.
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