Irvine’s New Century Financial Corp. has received bankruptcy court approval to auction off its loan lending unit within a week, the company said on Wednesday.
Delaware’s bankruptcy court has set May 2 as the due date for bids for the shuttered unit, starting at minimum of $1 million, according to reports.
New Century also was given court approval to move forward with the sale of its subsidiary Access Lending Corp.
The subprime lender last week won court approval to sell its loan servicing unit for a minimum of $133 million. Carrington Capital Management LLC, a hedge fund created by New Century, is the lead bidder for that unit. The loan servicing auction is set for May 16.
New Century filed for Chapter 11 bankruptcy protection earlier this month. It stopped originating loans in March.
