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Welcome To The Golden Minerals HUB On AGORACOM

Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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posted on Mar 13, 2008 02:36PM

Carlyle Fund's Assets Seized

Leaders Fail to Stop Securities Sell-Off
By Thomas Heath
Washington Post Staff Writer
Thursday, March 13, 2008; D01

A publicly traded affiliate of the Carlyle Group said yesterday that lenders were seizing its assets, sending the fund, Carlyle Capital, into insolvency.

The collapse of Carlyle Capital is the first time a Carlyle Group fund has failed and is a stinging embarrassment for the District private-equity powerhouse, which has built an international reputation with a client list that reaches around the world.

The high-profile down fall, part of the broad turmoil in credit markets worldwide, followed a week of frantic negotiations between the Carlyle Group and a number of lenders. Carlyle Group's three founders as recently as Monday were considering injecting cash into the fund as a way to usher it through the credit crisis.

By yesterday the fund had defaulted on $16.6 billion of debt and said it expected to default soon on its remaining debt. The fund's $21.7 billion in assets were exclusively in AAA mortgage-backed securities issued by Fannie Mae and Freddie Mac, traditionally considered secure and conservative investments, which it was using as collateral against its loans.

Ina statement, Carlyle Capital said that it had been unable to meet margin calls in excess of $400 million over the past week and that it expected its lenders to take control of its remaining assets. The lenders, headed by Deutsche Bank and J.P. Morgan Chase, began selling the securities last night, according to a report on the Wall Street Journal's Web site…
The problems at Carlyle Capital have preoccupied the top leaders at Carlyle Group. The firm's founders, David M. Rubenstein,William E. Conway Jr. and Daniel D'Aniello, had been in meetings with lenders in an effort to resolve Carlyle Capital's problems, not only to protect their own investment and that of employees who have put millions of dollars into the company, but also to preserve Carlyle's Midas-touch reputation.

Forbes magazine last year estimated Carlyle's three founders to each be worth about $2.5 billion…

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