April 2, 2007
Dear New Century Vendor:
Today New Century Financial Corporation filed a voluntary petition under chapter 11 of the U.S. Bankruptcy Code. We intend to use the chapter 11 process to preserve as much value in our servicing and loan origination platforms as possible. We are hopeful that we can use the chapter 11 process to stabilize our businesses and sell them to others who will continue to operate them as ongoing businesses.
In conjunction with our bankruptcy filing, The CIT Group and Greenwich Capital Financial Products, Inc. have agreed to provide New Century up to $150 million in debtor-in-possession (DIP) financing. The DIP financing is expected to provide New Century with funding to facilitate the restructuring process. Upon Court approval, these funds will help ensure that vendors will receive timely payment for post-petition goods and services in accordance with the normal terms of our agreements.
Unfortunately, our bankruptcy filing means that any payments owed by New Century to a vendor for goods or services provided prior to the filing cannot be paid at this time. These amounts are "pre-petition" claims, and vendors seeking payment for such claims must do so through the chapter 11 process. You will be receiving further information about the claims process directly from the court.
If you have such a claim, we sincerely regret the impact of our filing on you as a valued business partner. We hope you will recognize that our ability to pay you in full, under normal payment terms, for all goods and services provided after the bankruptcy filing means that our relationship going forward will be mutually beneficial.
Any questions or requests for assistance should be directed to your usual contact at New Century. You can also visit the new “Restructuring” section of our website at www.ncenrestructuring.com, which contains additional information about New Century’s chapter 11 filing.
We value and appreciate your services. Thank you for your ongoing support and understanding.
Sincerely,
Ted Seden
AVP, Vendor Management
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