Carlyle fund, facing liquidity problems, suspended on Amsterdam exchange

0 Comments | AFP, March, 2008

AMSTERDAM (AFP) — Share-trading in a troubled fund managed by US private equity gaint Carlyle was suspended here early Friday at the request of Dutch stock market authorities, the market regulator AFM said.

The shares had lost 58 percent during trading on Thursday.

The fund, Carlyle Capital Corporation, said several securities backed by real estate loans had been "liquidated" by investors who had bought them according to an agreement that Carlyle would ultimately buy them back.

The action by investors came in response to the fund's inability to meet margin calls, which require an enterprise to show proof that it has cash reserves equal to a portion of the value of shares or positions it holds on a given market.

Without such guarantees on the level of...