NovaStar Financial Inc. announced a third quarter loss of $598 million. A credit line with Wachovia may be lost at the end of this month, according to the report. "If the Company cannot obtain additional waivers or amendments, there can be no assurance Wachovia would not issue an event of default and cause the outstanding borrowings to become due and payable immediately which also could cause the company to file bankruptcy," according to a filing with the Securities and Exchange Commission.
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