Troubled lender NovaStar loses three top executives, including a co-founder

Three top executives are leaving troubled NovaStar Financial Inc., including co-founder Scott Hartman, who has been chairman and chief executive of the subprime lender for more than a decade.

Also leaving NovaStar are Gregory Metz, senior vice president and chief financial officer, and Jeff Ayers, senior vice president, general counsel and corporate secretary. Their departures are effective Jan. 3.

...

... future borrowings are at the “sole discretion” of its remaining lender, Wachovia Bank, and there can be no assurance that Wachovia will provide additional advances to the company. Last week, Wachovia gave NovaStar a reprieve until Jan. 4 from financial requirements that could force the company into bankruptcy.