Bankruptcy, Restructuring and Creditors' Rights Lawyers Advising in Multiple $100M+ Matters Including People's Choice Home Loan Inc., & New Century Financial Corp.
The melt-down in the subprime mortgage industry continues to be front page news nearly every day. In the last ten months alone, more than a dozen of the largest subprime lenders in the United States have sought protection under chapter 11 while they attempt to reorganize, or in reality, liquidate.
Lawyers from Baker Hostetler's Bankruptcy, Restructuring and Creditors' Rights Practice Group continue to expand their involvement in nearly all of the subprime mortgage bankruptcies to be filed—including all of the largest cases. Don Workman, who heads the practice for the firm's Washington, D.C., office, is representing the chair of the creditors' committees in the People's Choice Home Loan Inc., and New Century Financial Corp., chapter 11 cases. Filed in California and Delaware, respectively, each case has assets and liabilities exceeding $100 million. At the time of its filing, New Century was the nation's number two subprime mortgage lender. Both cases have now filed plans and are moving to confirmation. Other subprime mortgage company cases in which Baker represents parties are currently pending in bankruptcy courts from Arizona to New York to Florida. Orlando partner Eric Golden is assisting with cases in Florida. According to Workman, "These cases are moving at a fast pace as the companies desperately try to maximize value through asset sales. The cases are now moving to a litigation phase as the creditors seek to recover from third parties."