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Carlyle Founders Consider Cash Infusion
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By kicking in additional cash or finding another form of collateral, Carlyle's founders hope to preserve about $12 billion of the $21.7 billion in assets it once held, sources said.
One person involved in the talks with the banks said the scaled-down company should still preserve "a significant amount of shareholder investments."
Ullman said none of the money used to help Carlyle Capital so far has come from other Carlyle Group funds or from the firm's clients.
"We believe that the challenges facing [Carlyle Capital] will have no measurable impact on any other fund sponsored by the Carlyle Group," Ullman said.
Two of the three co-founders, Conway and Rubenstein, were in New York on Monday, accompanied by a team of Carlyle Group insiders who are trying to negotiate a "stand-still" agreement with lenders while they work out a financial solution.
The stand-still agreement would stop lenders from foreclosing on loans they have made to Carlyle Capital.
Trading in Carlyle Capital has been suspended since Friday, when its shares plummeted 60 percent, to $5 a share.
Carlyle Capital said in a statement that it was awaiting responses from the lenders.
Staff writer Howard Schneider contributed to this report.
