New Century Taking Loss on Barclays LOC

New Century Financial Corp., says it will realize a $46 million loss on a deal struck with Barclays Bank PLC to settle $900 million in buyback/financing claims.In a filing with the Securities and Exchange Commission, New Century said it will be relieved of an obligation to repurchase $900 million in loans and Barclays will accept the mortgages "as is." However, if New Century strikes a similar deal with better terms with other warehouse providers/investors, the subprime lender will compensate Barclays by offering the London bank the same terms. As part of the deal, the Irvine-based New Century has agreed to transfer the servicing of the mortgages to a third party approved by Barclays. New Century, which is no longer funding loans, has been delisted by the New York Stock Exchange. Investment banking sources told MortgageWire that the company is working on a pre-packaged bankruptcy and sale agreement but is in the very early stages of negotiations. (See the March 26 issue of National Mortgage News for more details.)