New Century Warehouse, which does business as Access Lending Corp. and is owned by Irvine-based New Century Financial Corp., filed for bankruptcy Friday in Wilmington, Del., listing assets and debts of less than $100 million, reports Bloomberg.
Here’s more from Bloomberg:
“This is the last major operation to file for bankruptcy,” company spokesman Dan Gagnier said in a phone interview.
New Century Financial bought Sugar Land, Texas-based Access Lending last year for $10 million. Access, a specialty finance company, provides warehouse lending services to home mortgage bankers.
Access founder David Fleig agreed in April to buy back all of the assets of the company from New Century for $76,000 and a promise to share the proceeds of a pool of mortgages owned by Access.
Access was not among the 14 units put into bankruptcy when Irvine, California-based New Century filed its Chapter 11 liquidation case in April. That allowed the smaller company to continue operating, according to court records.
Access filed bankruptcy now to distribute the proceeds of the sale of its assets to New Century’s creditors, Gagnier said.
Last year New Century issued $60 billion in loans, making it the largest U.S. lender specializing in loans to homebuyers with poor credit.
Who is next to go belly up? The other shoe? There are still quite a few to drop. And the class action suits have not yet begun.