Thursday, February 19, 2009

Carlyle Group Welshes on Debt

Forget about the Carlyle Group's bankruptcies leaving creditors with pennies on the dollar. Two affiliates, Freescale Semiconductor and IMO Carwash plan to cram down creditors.

Recall the Treasury Department wants firms like Carlyle to save banks. The stimulus package provided tax breaks for companies buying back debt on the cheap. Rule changes may keep Carlyle a winner. Blue corporafornicates almost as well as Red.