GREENWICH, Conn., Oct. 23 /PRNewswire/ -- Black Diamond Capital Management announced today that on October 14, 2008, one of its managed funds, BDC Finance L.L.C., terminated a derivative facility with Barclays Bank PLC. The termination was due to Barclays' failure to return excess collateral held by Barclays under the facility due on October 7 and Barclays' failure to cure the default after applicable cure periods. When Barclays failed to return the amounts due to BDC Finance in accordance with the termination, BDC Finance commenced legal action against Barclays in NY State Supreme Court on October 17. BDC Finance is confident that it will prevail in the action.
BDC Finance and Barclays were counterparties under bilateral derivative transactions and BDC Finance has no ownership interest in the underlying reference obligations. As such, any sale by Barclays of the reference obligations is solely for its own account.
SOURCE Black Diamond Capital Management
For further information: CONTACT: Thomas Becker, +1-646-335-5188, tom_becker@sitrick.com
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