plans on hawking more assets linked to now-bankrupt
The New York investment firm, which already has sought to sell some $2.48 billion in New Century-related debt, is now planning a public auction for the sale of assets formerly held by New Century Mortgage subsidiary NC Residual IV.
Also up for grabs is a portfolio of "non-real estate investment trust restricted securities." The size and exact makeup of the offering is unclear. A Morgan Stanley spokesman declined to comment, as did a spokeswoman at New Century.
After being put under investigation by securities regulators and government prosecutors, delisted by the
New York Stock Exchange
and cut off by its lenders, New Century did Monday what everyone on Wall Street had expected. It filed for bankruptcy and agreed to sell some assets, including its mortgage-servicing platform, for $189 million and cut 3,200 jobs, reducing its workforce by 54%.
Still, lenders and opportunistic investors appear keen to extend some relief, albeit at a price, to mortgage lenders taken down in the subprime fallout.
Accredited Home Lenders
( LEND) obtained $1.1 billion in warehouse facilities from an undisclosed commercial bank through the renewal of an existing loan and is in discussions with another for renewal of a $650 million warehouse facility.
Accredited also scored relief from Farallon Capital Management, which provided it a $200 million term loan.
( FMT) sold subprime mortgage loans once valued at some $4 billion to an undisclosed buyer.
Morgan Stanley announced its New Century sale by placing a public auction notice in
The New York Times
The Wall Street Journal
today, similar to one it placed two weeks ago.