UPDATE 1-Carlyle Capital says talks with lenders constructive

Mon Mar 10, 2008 10:45pm EDT
 
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NEW YORK, March 10 (Reuters) - Carlyle Capital Corp Ltd CARC.AS, an affiliate of private equity firm Carlyle Group [CYL.UL], said on Monday that it has had "constructive" talks with its lenders as it seeks a standstill agreement.

It said it believed certain lenders may have liquidated collateral securing $700 million more of Carlyle Capital's debt, bringing the total to around $5.7 billion.

"Although the company has not received executed standstill agreements from its lenders, the company remains in active discussions with lenders who hold approximately $16 billion in securities," it said, adding that discussions "progressed throughout the day in a constructive manner".

Dutch-listed Carlyle Capital, 15 percent owned by the private equity group's managers, warned on Friday that its cash could run out.

In its latest announcement, the company said no creditors or shareholders have taken legal action against it. (Reporting by Ritsuko Ando; Editing by Tomasz Janowski)

 

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