Carlyle Expects Asset Seizure

Investment fund Carlyle Capital Corp. Ltd. says it expects its lenders to "promptly" seize substantially all its remaining assets as a result of margin calls linked to a slump in the prices of top-rated agency mortgage-backed securities. The fund had tried to negotiate with its lenders, but it said those negotiations "deteriorated late on March 12 when, among other things, the pricing service utilized by certain lenders reported a drop in the value of [residential] MBS collateral that is expected to result in additional margin calls of $97.5 million." Through March 12, the company had defaulted on $16.6 billion of indebtedness. "Overall, it has become apparent to the company that the basis on which lenders are willing to provide financing against the collateral has changed so substantially that a successful refinancing is not possible," the fund said.