Financial Times FT.com

Carlyle faces further margin calls as banks step up pressure to pay

By Martin Arnold and Henny Sender

Published: March 8 2008 02:00 | Last updated: March 8 2008 02:00

The confrontation between Carlyle Group and its bankers intensified yesterday as the private equity firm's Amsterdam-listed fund teetered on the brink of collapse after receiving margin calls and default notices from lenders.

As analysts forecast Carlyle Capital Corp could go bankrupt unless its founder injects more money, bankers said the situation was likely to leave a stain on the reputation of one of the world's biggest buy-out firms.

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