Black Diamond Managed Fund Terminates Derivative Facility With Barclays

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Thu Oct 23, 2008 7:47pm EDT 

GREENWICH, Conn., Oct. 23 /PRNewswire/ -- Black Diamond Capital Management
announced today that on October 14, 2008, one of its managed funds, BDC
Finance L.L.C., terminated a derivative facility with Barclays Bank PLC.  The
termination was due to Barclays' failure to return excess collateral held by
Barclays under the facility due on October 7 and Barclays' failure to cure the
default after applicable cure periods.  When Barclays failed to return the
amounts due to BDC Finance in accordance with the termination, BDC Finance
commenced legal action against Barclays in NY State Supreme Court on October
17.  BDC Finance is confident that it will prevail in the action.

BDC Finance and Barclays were counterparties under bilateral derivative
transactions and BDC Finance has no ownership interest in the underlying
reference obligations.   As such, any sale by Barclays of the reference
obligations is solely for its own account. 

SOURCE  Black Diamond Capital Management

CONTACT: Thomas Becker, +1-646-335-5188, tom_becker@sitrick.com
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