Carlyle Capital Corporation go bust - US$16.6 BN ++++ down the tubes...more to follow

We posted about the woes of Carlyle Capital Corporation last Friday, March 07, 2008 - Carlyle leads the way with Triple A mortage Fire Sales as margin calls cannot be met.

Now today they have issued notice that effectively they have gone bust - Carlyle Capital Corporation (CCC) Unable To Reach Agreement With Lenders; Lenders Likely to Take Possession of Remaining Assets Carlyle Capital Corporation Limited listed on Euronext Amsterdam ticker symbol: CCC; ISIN: GG00B1VYV826 it is a Guernsey investment company that was formed on August 29, 2006 and completed its initial offering in July 2007. Carlyle Investment Management L.L.C. (“CIM”) manages the Company pursuant to a management agreement. - CCC has not been able to reach a mutually beneficial agreement to stabilize its financing.

Which means they have run out of money.

The only assets held in the Company’s portfolio as of today are U.S. government agency AAA-rated residential mortgage-backed securities (RMBS). (There are of course avariety of views as to whether these actually represent assets - ie they have actually no tradeable value - like Lord Patel's 600 Vinyl LP's)

In the last week Company received margin (and could not meet margin calls of more than US$400 million.

Unable to meet them the lenders proceeded to foreclose on the RMBS collateral.

Beware - adjust your clothing before reading the next sentence.

In total, by last night, the Company has defaulted on approximately $16.6 billion of its indebtedness. The remaining indebtedness (?) is expected soon to go into default.

Today we expect margin calls tomorrow of approximately US$97.5 million.

CCC IPO'd last July at US$ 20 a share , today they are worthless. Carlyle Gropup are said to own 15% of CC .Says something about the management skills of Carlyle Investment Management L.L.C.





According to CCC's annual report, counterparties for its repurchasing agreements as of the end of 2007 (ie the folks who are left holding those wonderful AAA-rated residential mortgage-backed securities (RMBS)) were Bank of America, Bear Stearns, BNP Paribas, Calyon, Citigroup, Credit Suisse, Deutsche Bank, ING, JP Morgan, Lehman Brothers, Merrill Lynch and UBS.