RTFA: http://news.bbc.co.uk/2/hi/business/7280892.stm
Carlyle Capital Corporation, the fund manager backed by the giant private equity firm Carlyle Group, has not been able to meet several payment demands.
The company said it received margin calls from seven financing groups that totalled $37m and it was not able to meet four of those requests.
A margin call is a payment to guarantee a much larger debt or investment.
Carlyle Capital invested in assets backed by US mortgages, which have been hard to value since the credit crunch.
In a statement, the company’s chief executive, John Stomber, said the last few days had created a market environment that did not fairly value the fund’s assets.
He said that had caused “instability” and “variability” in the company’s financing arrangements.
He said Carlyle Capital was working with the companies involved to sort out the issues.
One creditor has issued a default notice and Carlyle Capital expects to receive a second such notice.
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