Carlyle Capital margin calls soar past $400 million
Fund requests standstill agreement; lenders may have sold $5 billion of assets
By Simon Kennedy, MarketWatch
Last update: 10:32 a.m. EDT March 10, 2008
LONDON (MarketWatch) -- Carlyle Capital said Monday that margin calls from its lenders soared past $400 million, leading it to request a standstill agreement to prevent any further forced sales of its investments.
The highly leveraged mortgage-bond fund said certain lenders may have liquidated as much as $5 billion of its assets and added it's still in negotiations with the remaining lenders, who hold around $16 billion in securities. If a deal can't be reached, some of these lenders may sell their securities as well, it warned.
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