Muckety

Auditor doubts NovaStar’s health

By Gary Jacobson

September 5, 2007 at 1:04pm

Hint: Click in map to explore connectionsStory continues below interactive map 

Click to activate this MucketyMap
Click to activate interactive map
(requires Java)
MAP HINTS: Click expands a name. Control+Click centers map on a name. Solid lines are current relations. Dotted lines are former relations. For advanced tools choose Tools > Options from the menu at top. More help. Not seeing the maps? Please go here to check for the latest version of Java.

It’s one thing when stock market analysts knock your company’s prospects. Even worse when your auditor does the same.

Subprime lender NovaStar Financial cancelled plans to raise $101 million Tuesday saying its auditor, Deloitte & Touche LLP , wanted to include a statement in the company’s financial disclosures about the “uncertainty of NovaStar’s ability to continue as a going concern.”

Kansas City-based NovaStar also said it was cutting another 275 jobs, dropping the employee count to 600, down from more than 2,000 at the end of 2006.

“We are pulling back to focus on NovaStar’s core strengths and preserve liquidity,” NovaStar CEO Scott Hartman said in a statement.

Scott Valentin, an analyst at Friedman, Billings Ramsey & Co., wrote that “an eventual liquidation of the company is highly probable.”

Click here to sign up for the Muckety Newsletter



 Read related stories: Business · Mortgage · Subprime  

0 Comments

  • There are no comments yet, be the first by filling in the form below.

Leave a Comment


Chicago Muckety
December 3, 2008
September 12, 2008
May 28, 2008
May 27, 2008
May 23, 2008
  • Search for stories
      
    Special Features
    Muckety Newsletter
    Keep up with all things Muckety!
    Subscribe to our Muckety email newsletter for a list of recent stories and a glance at what's new.
    Email:
    Categories
    Special Features

We make every effort at Muckety to ensure that our data is correct and timely. However, relationships are in constant flux and we cannot guarantee accuracy. If you come across incorrect or outdated information, please let us know.