The Carlyle Group failed in its attempt to takeover UK dining chain Prezzo. Carlyle purchased discounted debt in Prezzo with the hopes of converting the debt into a majority equity position. Prezzo's owner TPG Capital threatened a lawsuit and Carlyle backed away.
Carlyle used a similar strategy to takeover British carpet maker Brintons and Mrs. Fields. The Carlyle Group lost ManorCare to creditors.
Disruptions ahead mean opportunities for the PEU boys, at least those with cash.