Friday, March 14, 2008

Carlyle Capital in default, on brink of collapse

Source: The Gardian

"Reuters, Thursday March 13 2008

By Reed Stevenson

AMSTERDAM, March 13 (Reuters) - Carlyle Capital Corp, an affiliate of private equity firm Carlyle Group, is in default on about $16.6 billion of debt and said its lenders would likely take possession of its remaining assets.

The news provided a new sign of stress in global credit markets and affected asset prices and sentiment worldwide.

Bund futures in Europe, where Carlyle Capital shares are listed in Amsterdam, rose back to levels they traded at before the U.S. Federal Reserve and other central banks coordinated on Tuesday to inject liquidity into credit markets.

"The credit angst is back," said Tim Condon, head of Asia research with investment bank ING..."

No comments: