New Century committee members look to continue securities trading, loan sales

By Caroline Salls

Pittsburgh, April 27 - New Century Financial Corp.'s official committee of unsecured creditors requested court approval to allow its members to trade in the company's securities and engage in loan sales, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, committee members would be allowed to trade New Century's securities or participate in loan sales upon establishment of an ethical wall that sets policies and procedures to prevent the misuse of any non-public information that may be obtained as a result of their committee membership.

The order would also confirm that committee members would not be violating their duties as members or subjecting their claims to disallowance or subordination by trading in the company's securities or participating in loan sales.

A hearing is scheduled for May 15.

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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