New Century granted court OK to sell servicing assets for $188 million

By Jennifer Lanning Drey

Portland, Ore., May 21 - New Century Financial Corp. obtained court approval to sell its servicing assets and servicing platform to Carrington Capital Management, LLC for $188 million, according to a source familiar with the case.

The purchase price was originally set at $139 million but was increased to the higher price following an auction involving multiple bidders, according to a previously issued company news release.

"We have been working diligently to maximize the value of the bankruptcy estate for the benefit of all New Century stakeholders, and we are pleased with the outcome of the auction for one of the company's core assets," said Brad A. Morrice, New Century's chief executive officer, in the release.

As previously reported, the assets to be sold include New Century's mortgage service rights contained in servicing agreements with 28 securitization trusts, the right to be reimbursed for servicing advances made by the company under these mortgage service rights, various contracts related to the servicing business, various leases used in the servicing business and equipment, files, records, intellectual property and other assets used in the servicing business.

New Century, an Irvine, Calif.-based financial company, filed for bankruptcy on April 2. Its Chapter 11 case number is 07-10416.

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