Tuesday, October 20, 2009

Carlyle's Latest Implosion: Stallion Oilfield Services

Carlyle Group and Riverstone Holdings affiliate Stallion Oilfield Services declared Chapter 11. The company couldn't shake its heavy debt load, despite cutting jobs 40%, suspending 401(k) matches and reducing insurance costs. It's primary task in bankruptcy will be reducing $515 million in unsecured debt. That's bad news for unsecured debt and equity holders.

Which investor will sue Carlyle next?