Carlyle Capital Corp. Ltd. is on the
verge of collapse as the company has been unable to reach an accord with its lenders and expects them to "promptly" seize all of its remaining assets.
The Euronext Amsterdam-traded company has been unable to meet margin calls topping $400 million in the past week, bringing it into total default of about $16.6 billion. Negotiations fell apart on Wednesday when the value of the residential mortgage-backed securities fell again, triggering additional margin calls of $95.7 million on Thursday. The only assets held in Carlyle Capital's portfolio currently are U.S. government agency AAA-rated residential mortgage-backed securities. It parent, the Carlyle Group, has said that the unit's troubles -- other than embarrassment and the loss of a $100 million short-term loan --
will not affect its other funds.
- George White See Deal.com story on Carlyle Capital See Carlyle Capital press releaseSee Deal.com story on Carlyle Group
Continue reading below
