National Century Financial Enterprises, Dublin, Ohio, missed its regularly scheduled interest payment of $8 million yesterday, putting it in technical default of its bond obligations. The missed payment is no surprise since NCFE, a healthcare finance firm, filed for bankruptcy protection Nov. 18 and has not paid customers in several weeks. The company buys accounts receivable from healthcare providers, packages them into bond issues and fronts providers cash from the issues. It faces multiple lawsuits alleging fraud and other financial malfeasance. At least five healthcare companies have filed for bankruptcy citing NCFE's failure to pay them. NCFE spokesperson Jim Nickell said the company is attempting to sell its corporate headquarters to satisfy creditors and is trying to help providers obtain financing to buy out of the NCFE program. In other NCFE-related developments, Credit Suisse First Boston Corp., New York, announced late last month that it would take a $214 million write-off on its NCFE bond holdings because of losses suffered "as a result of what appears to be massive fraud at NCFE." -- by Mark Taylor
NCFE misses payment, seeks buyer for headquarters
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