New Century layoffs

[kev374]

I have a friend whos wife is (was) working there. He just told me that they are having massive layoffs, most of the company is closing down including the IT division.

Adios New Century,
C’est la vie!

[davelj]

My understanding is that they’re going to announce a Chapter 7 bankruptcy (liquidation) within the next 30-45 days. One of the challenges has been that virtually all of the bulge bracket investment banking firms that would otherwise handle NEW’s investment banking needs right now are prohibited due to conflicts of interest (they’re lenders to NEW and will thus be seeking reparations in the bankruptcy), so NEW has had to go a little further afield for banking services which has delayed things a bit. But the outcome will be the same… kaput.

[lendingbubblecontinues]

Well…at least those young hotshot loan guys can go live in their convertible Ferraris.

Suck it, guys. You all better hope Carl’s Jr. is still hiring cause I got all the day-laborers I need.

[no_such_reality]

Yeah, I hear they’re having trouble moving the MBS of their refi’d employee mortgage paper even though it has the attractive terms of 10% neg-AM, I-O with a ten years fixed 0% teaser rate minimum payment. 😉

[no_such_reality]

Ouch, they’re not DOA yet, but dang close.

New Century Loans Halted

[AK]

NEW dropped another 25% today to 3.87, with trading volume of 50 million shares (pretty much the entire float).

I know little about the inner workings of the subprime mortgage industry but I do know a little bit about failing/failed companies. Seems to me that NEW has passed the point of no return …

Wow. That was fast. Like Enron fast.

[sdrealtor]

It looks like they jumped the shark!

[Anonymous]

Check out the seasoned member of the New Century Board of Directors who recently quit. All of 37 years old:)

http://www.forbes.com/finance/mktguideapps/personinfo/FromPersonIdPersonTearsheet.jhtml?passedPersonId=871763

[davelj]

Repeat after me: toast. burnt.

[DCRogers]

David Einhorn: “Seasoned member of the NEW board of directors”: this photo says it all:

http://articles.news.aol.com/business/_a/hedge-fund-manager-wins-big-in-poker/20060811112109990008

Fewer chips in front of him now. Guess he (and his fund) couldn’t sell NEW as long as he was on the board… bad timing dude…

[davelj]

Well, I got the timing right, but my understanding was that they were heading for Chapter 7. I guess their creditors must have found something of value in keeping the operation alive for a while so they opted for Chapter 11. In this case, they say tomato, I say tomahto. Either way… kaput and a big ‘ole goose egg for the equity holders. Good riddance.

[Author]

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