Irvine-based New Century Financial Corp. has replaced chief executive Brad Morrice along with the bankrupt subprime lender’s head of loan production, the company said on Tuesday.
Morrice was replaced by Holly Etlin, who had been acting as the company’s chief restructuring officer. The change took effect last week.
The termination, made “without cause,” allows Morrice to be paid more than three years’ salary under the terms of his employment agreement. He is unlikely to receive the full amount of that windfall due to exit pay limits approved by the bankruptcy court.
Morrice had come under fire from the U.S. bankruptcy trustee and creditors for accounting problems during his tenure that were a factor in New Century’s demise.
Anthony Meola, New Century’s executive vice president for loan production, also was let go without cause. He’s due to be paid upward of two years’ salary.
New Century is in the process of winding down operations, laying off a majority of its workers and auctioning off assets, following its April bankruptcy filing.
Etlin is a managing partner for AlixPartners LLP, a financial advisory and consulting firm. New Century will be paying $695 per hour for Etlin’s services.
