New Boss, Board at New Century?

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We try to avoid following every step of the New Century Financial bankruptcy, but the LA Times today files a story worth noting, reporting that the Justice Department has taken unusual step of asking a bankruptcy judge to throw out New Century’s management and board, and replace them with an appointed trustee. How unusual is that? ‘Almost unheard of’ before 2005, Kim Christensen reports.

Management at New Century didn’t win any friends when it asked the bankruptcy court for approval to hand out $6.3 million in bonuses to motivate leadership and boost morale (Morale? As John McEnroe would say, ‘Are you serious?’ The company is in ruins, for crying out loud).

Also worth noting: it appears the Times has scooped The Orange County Register on this one, which is saying something, because the Register has tried to own the story, reporting breathlessly on every twist and turn.