Legal counsel sought on tax issues
By MortgageDaily.com staff
2/10/2006

NovaStar Financial Inc. postponed its fourth-quarter earnings release and conference call as it awaits legal opinion regarding tax issues.

While the earnings results should have been released yesterday and the call was to occur today, the nonprime lender instead issued an announcement that it will delay these activities until the next two to four weeks.

"During the course of reviewing its yearend financial results and in discussion with the company's independent auditors, the company has decided to obtain legal opinions to further support certain tax positions," NovaStar said in the announcement Thursday.

The Kansas City, Mo.-based real estate investment trust says it has consulted with outside tax counsel and should receive opinions within a month.

The postponement, however, will not affect the timely filing of NovaStar's annual report on Form 10-K, according to the statement.

For the third quarter 2005, NovaStar reportedly originated a record $2.8 billion in loans and its net income of $34.6 million fell 9% from the second quarter.

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