NovaStar a major player in the sub-prime mortgage meltdown is letting its license lapse due to its inability to satisfy minimum requirements.
The company, based in Kansas City, will also lose its listing on the New York Stock Exchange. Since the beginning of 2007 NovaStar has lost 98% of its market value due to the mortgage meltdown.
NovaStar will also lay off 170 of it 200 remaining employees, costing the company roughly $1.5 million on a pre-tax basis. NovaStar’s will now focus their attention to managing the remainder of their portfolio.
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