Monday, April 30, 2018

Carlyle Group Sues Morocco, Not Guernsey

Morocco World News reported:

The US-based private equity firm Carlyle, is suing the Moroccan government for over USD 400 million in the International Center for Settlement of Investment Disputes (ICSID), claiming the sum is equivalent to the profit lost when Morocco’s sole refinery went bankrupt three years ago.
Contrast this lawsuit with Carlyle's aggressive defense of Carlyle Capital Corporation's March 2008 bankruptcy.  FT reported

Carlyle Capital Corp mortgage-bond fund collapsed with more than $1bn of losses to investors that included large institutions and wealthy individuals.
Ironically the Moroccan refinery has CCC sized losses:

It is believed that SAMIR’s collapse left some of the world’s biggest trading firms, including Carlyle, with unpaid debts of over USD 1 billion.
Carlyle's CCC defense won in a Guernsey court:

The commercial decisions by directors of CCC were reasonable and should not be looked at with the benefit of hindsight, the court ruled, adding that risk was an inherent feature of the investment business.
Morrocan lawyers should study Carlyle's vigorous defense of highly leveraged Carlyle Capital Corporation and throw Carlyle's words back in its PEU face, all two of them. 

Carlyle seeks a government bailout for its financial losses.  Carlyle took bailout money for Boston Private and BankUnited.  It's a signature PEU move.