U.S. News

New Century Wins Approval for $150 Million in Bankruptcy Financing


New Century Financial, the largest U.S. subprime lender under bankruptcy protection, was authorized to obtain up to $150 million of financing to keep it operating while in Chapter 11.

U.S. Bankruptcy Judge Kevin Carey issued a temporary order granting the so-called debtor-in-possession financing, a court filing shows. The judge set a final hearing for April 24.

Irvine, California-based New Century had lined up financing commitments from CIT Group and Royal Bank of Scotland Group's Greenwich Capital Financial Products unit prior to its April 2 bankruptcy filing.

New Century had been the largest independent U.S. provider of home loans to people with poor credit histories before seeking protection from its own creditors. The company collapsed amid rising homeowner defaults and many regulatory investigations.