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07.03.2008 - Carlyle unit shares are suspended

Shares in Carlyle Capital Corporation (CCC) a unit of the private equity firm Carlyle Group, have been suspended.

CCC said on Thursday it had received demands for money from some of its lender banks that it could not meet.

The Czech Republic news are represented by www.prague-apartments-hotels.com

CCC specialises in investments backed by US mortgages, which have been hit hard by the housing slowdown.

The shares were suspended when CCC said banks had begun liquidating securities it had used as collateral and that it had received more demands for money.

As of last month, CCC had a portfolio of $21.7bn (Ј10.8bn) of mortgage-backed securities issued by Fannie Mae and Freddie Mac, the giant US providers of capital for housing.

CCC said that its lenders had decided to increase the amount of collateral they needed because of the state of the US housing market.

(BBC)

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