http://www.globeinvestor.com/servlet/story/RTGAM.20070402.wnewcentury0402/GIStory/

The story below is supposed the preamble of many such bankruptcies



New Century files for Chapter 11 bankruptcy
Reuters


Monday, April 02, 2007

NEW YORK — New Century Financial Corp. Monday filed for Chapter 11 bankruptcy protection in the biggest collapse of a mortgage lender in the U.S. housing downturn.

The largest independent U.S. subprime mortgage lender filed for protection from creditors after several lenders forced the company to repurchase billions of dollars in bad loans.

New Century's largest creditors included Goldman Sachs Group Inc.'s Goldman Sachs Mortgage Co.

Irvine, California-based New Century is the biggest casualty so far of the souring subprime mortgage market, which has forced many lenders to put themselves up for sale, to post losses, or to file for bankruptcy.

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