New Century - one of America’s largest subprime mortgage lenders – is careering towards bankruptcy. The company’s shares are down almost 70 percent, and languishing somewhere south of $5 a share.

As concerns grow about the financial viability of the company, its creditors are taking fright and cutting credit lines. Bear Stearns analysts reduced their estimated liquidation value to $8 to $9 a share, down from $10 to $11 previously and "expect the stock to trade toward this level as the odds of bankruptcy appear to have increased." Creditor confident was shattered after revelations that the company is under investigation for violating debt covenants with several investors.