New Century Files for Bankruptcy

New Century has unveiled its long-expected bankruptcy reorganization, saying it has agreed to sell its servicing assets and platform to Carrington Capital Management for $139 million, subject to court approval.The company also said that CIT Group and Greenwich Capital have agreed to provide up to $150 million of "debtor-in-possession" financing to keep the company in business during the reorganization. New Century said it will cut 3,200 jobs (more than half its work force) immediately. "The agreement to sell our servicing assets to Carrington is a significant and positive development, as it provides stability for holders of certain securities issued by New Century and Carrington's securitization trusts," said Brad A. Morrice, president and chief executive officer, in the company's announcement. The company said the Carrington deal will be subject to higher and better offers pursuant to Bankruptcy Court procedures. New Century can be found on the Web at http://www.ncen.com.