I’m not a legal expert by any means, but I spent some time reviewing the recent court filings surrounding the New Century bankruptcy today, and there is what strikes me as a very interesting motion filed by New Century’s attorneys that is apparently seeking to shorten the notice and objection periods associated with an Adequate Protection motion filed by the lender this week.
…it is crucial that the Court shorten the notice and objection periods for the Underying Motion in order to curtail the possible filing of multiple adversary proceedings by Repurchase Counterparties and Loan Purchasers. If the hearing on the Underlying Motion is scheduled later than May 30, 2007, the Repurchase Counterparties and Loan Purchasers will likely decide that they should commence adversary proceedings given the substantial amount of [time?] that will pass before the Underlying Motion can be heard.
Here’s the original Adequate Protection motion filed by New Century’s attorneys. What’s interesting is that New Century has said before that whatever assets it can sell would need to be sold by mid-May, while they still had some value. So, if I’m reading everything correctly, New Century is moving the Court to enter an Adequate Protection order that will essentially put a lien on every remaining piece of the company’s assets that haven’t been sold (right?). That would mean they need the notice and objection period shortened so that the Order can be entered before the end of May, lest the majority of the company’s creditors — who appear to have been waiting to file litigation — send out the dogs to battle. How’d I do? Any attorneys out there care to take a shot at this one?