Carlyle Capital seeks standstill accord with lenders

TEL AVIV (MarketWatch) — Carlyle Capital Corp., the Guernsey, Channel Islands, affiliate of the Washington private-equity firm Carlyle Group, said late on Sunday that its lenders had reduced the amount they’re willing to lend against the company’s portfolio of U.S. government agency AAA-rated residential-mortgage-backed securities. The lenders have issued margin calls of more than $400 million, Carlyle said, adding that it was continuing to discuss the situation with the lenders and with regulators. Carlyle said its lenders may have sold on the open market collateral securing some $5 billion of debt. “The company has not received any deficiency notices from those lenders who sold collateral to cover the borrowings,” Carlyle said in a statement. The company’s remaining lenders hold about $16 billion of securities. Carlyle said it’s asked the lenders for a standstill agreement, under which they wouldn’t foreclose and liquidate their collateral.
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