As if matters weren’t complicated enough. Carlyle Capital Corporation, the defunct MBS fund brought forth by private equity group Carlyle, was earlier this week placed in compulsory liquidation.
No surprise there. Liquidators were appointed to manage the demise of the bond fund, after it defaulted having failed to meet increased margin calls from its lenders.
So why not suspend the shares?
The Dutch regulator on Wednesday opted not to do that – clearly causing a headache for those charged with managing an orderly sale and distribution of CCC’s assets.
The Liquidators wish to repeat the information provided yesterday the 18th March 2008 that there is legal uncertainty regarding the title to any shares transferred after the placing of CCC into compulsory liquidation on the 17th March 2007 and that such transfers may be considered void. Persons transferring or wishing to transfer shares in CCC should obtain legal advice before effecting any purchase or sale of CCC shares on Euronext Amsterdam.
CCC’s lenders have seized the bulk of its portfolio of MBS, leaving shareholders with scant scraps for which to beg. The liquidators have said that shareholders are unlikely to receive a bean, as one might expect, from the winding up of the hugely leveraged fund.
Rather than opt for the cleanest and simplest option in these febrile times, the regulator for its part thinks that there is sufficient information made available to keep investors informed. Except some were still trading. Shares dropped from 38 cents to 28 cents on Wednesday, an impressive 97.4 per cent fall this year, as the odd block of shares changed hands, creating something of a legal headache.
What were the buyers in these trades hoping for? That the shell of CCC, crucified by MBS would rise again?
Related links
Deal Journal reminds us who else has a Guernsey-registered affiliate listed on Euronext
Carlyle Capital shares suspended as lender move to liquidate – FT Alphaville
Carlyle Capital lenders poised to liquidate $16bn – FT Alphaville