Bedell to act in liquidation of Carlyle Capital Corporation hedge fund

Offshore firm Bedell Group has been appointed to advise on the liquidation of collapsed hedge fund, Carlyle Capital Corporation (CCC).

The Amsterdam-listed fund, which invested $22bn (£11.1bn) of mortgage-backed securities, ran into trouble after the value of its assets plummeted by $5bn (£2.52bn).

The collapse of the Carlyle-backed venture sent shockwaves through the financial markets. The fund had not been supported by subprime mortgages, but had been hugely leveraged by Carlyle of every $32 (£16.15) it invested, roughly $31 (£15.65) was borrowed.

The Guernsey court last month appointed Begbies Traynor as liquidators of the troubled fund. The company instructed Bedell Group partners Mark Helyar and Christopher Anderson to advise it on the liquidation.

Helyar told The Lawyer his first aim was to delist the fund from the Amsterdam stock exchange – a move resisted by the market.

He said the liquidators would look to realise all the assets of the fund to free up cash it owes to a series of international banks, including?Citigroup, which was owed $4.7bn (£2.37bn) as of 31 December 2007.

Skadden Arps Slate Meagher & Flom has been instructed by CCC and Carlyle Investment Group in the US. The Skadden team is led by corporate restructuring senior partner Jay Goffman.

Linklaters managing associate Wim Hazeleger has been appointed by CCC and Begbies Traynor to advise on the Dutch legal issues.