Thursday, March 8, 2007

New Century (NEW) Follow-up

My good sources on Wall Street sent me a report that JP Morgan threw together in the aftermath of the NEW 8k filing late today

The executive summary:

  • Analyst believes that $265 mln secured with remaining unencumbered assets.
  • There is little left for common shareholders to lay claim on in a liquidation
  • $265 mln "last ditch" effort by NEW to meet margin calls.
  • NEW burned through $365 mln in cash in less than 3 mos precipitating need for $265 mln loan from unnamed lender.
  • JP Morgan advising investors to sell NEW shares.

As soon as NEW can secure DIP financing, or a buyer who will assume the liabilities it's over for common shareholders IMHO.

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