"The company and its subsidiaries do not have sufficient liquidity to satisfy their outstanding repurchase obligations, " New Century said in its filing.
The concerns are heightened when you consider that many government and tax authorities are hiring third party debt collectors to resolve outstanding taxpayer obligations.
They argue that such a rash move will cause the U.S. to default on outstanding debt obligations, thereby sending interest rates sharply higher across the board.
This statute precludes any nation from selling bonds or other securities in the United States so long as it has outstanding defaulted obligations to the American government.
The nation actually reached its debt ceiling yesterday and, while the Treasury Department says that it can continue to pay outstanding debt obligations and other bills for another two months, there will need to be an all new debt ceiling battle in Congress beginning in February to allow the nation to continuing making payments on its debt obligations.