Irvine-based New Century Financial Corp. has come to terms with unsecured creditors on its bankruptcy but needs more time to come up with a final plan, the Wall Street Journal reported.
In a recent filing with the U.S. Bankruptcy Court in Wilmington, Del., the failed subprime mortgage lender asked to have through January to file a bankruptcy plan covering the sale of assets and payment of creditors.
New Century wants until March 28 to solicit votes from creditors on its plan.
If approved by the court, New Century would continue to have exclusive control of its bankruptcy and not have to contend with competing plans from creditors.
A decision is expected by Jan. 23.
New Century faces $35 billion in creditor claims. The company has been challenging some of the claims, which far exceed its assets and gains from business sales.
