A probe into accounting irregularities at Irvine’s New Century Financial Corp. is being impeded by former members of the company’s senior management team, a bankruptcy court-appointed examiner said.
The examiner, Michael Missal, is seeking court approval for subpoena power to question the lender’s executives and directors, a court filing said on Wednesday.
Missal, a partner with Kirkpatrick & Lockhart Preston Gates Ellis LLP, was appointed as examiner in the case by Delaware’s bankruptcy court in June.
He’s investigating what caused New Century to restate its 2006 financial statements, as well as the company’s handling of its cash after it filed for bankruptcy in April.
Missal said he has received “millions of pages of documents” from New Century and has interviewed numerous company employees who have agreed to be interviewed.
But some members of New Century’s former management team have not cooperated, Missal said. The court filing did not specify who those former executives were.
The court will consider Missal’s request at an Oct. 17 hearing.
