Irvine’s New Century Financial Corp. has hired an adviser known for its work on corporate restructuring and bankruptcy cases.
The subprime lender has tapped New York-based Lazard Ltd., creditors familiar with the situation told Reuters.
The move is the latest indication that New Century could be headed toward possible bankruptcy, following a precipitous stock plunge since February, a lack of funding and the halting of making loans.
A sale of the company or its loans also could be part of why Lazard is being tapped.
Lazard is one of the country’s better-known corporate restructuring advisers, working on a number of high profile bankruptcy cases.
Los Angeles-based law firm O’Melveny & Myers LLP, meanwhile, has been retained as New Century’s legal adviser, Reuters said. The firm has a business restructuring and reorganization practice.
