Einhorn Quits New Century Board

New Century Financial's (NEW) troubles keep worsening.

David Einhorn of the New York-based hedge fund Greenlight Capital resigned from the real estate investment trust's board of directors late Wednesday, according to a filing.

Greenlight is one of New Century's largest shareholders, owning 6.3% of the lender's outstanding common stock. The firm has been a shareholder of New Century since 2002.

Einhorn's nomination to the board last year was the culmination of a battle between the two firms. He first attempted to get on New Century's board in 2005, but was rejected. Greenlight retaliated by attempting to nominate three directors onto New Century's board.

Last March, New Century finally agreed to increase the size of its board to 11 members and give Einhorn a seat. Along with the agreement, New Century also waived the rules for Greenlight in regards to how much the company could own of the lender. New Century permitted Greenlight to own as much as 19.6% of the company, though Greenlight's stake never got that high.

Pleased with the outcome, Einhorn praised the lender at the time.

"New Century is a unique and valuable franchise," he said in a statement at the time. "I look forward to sharing my perspective as the board oversees effective allocation of the company's capital to the most attractive risk-adjusted opportunities, and to working with the other board members to enhance per-share value for all stockholders."