Carlyle Capital Corp, a fund listed in Amsterdam, said in New York on Wednesday that talks with lenders deteriorated after a drop in the value of its mortgage investments, which it said would result in margin calls of $97.5 million on top of the $400 million it was already facing. A “successful refinancing is not possible,” Carlyle Capital said, after trying for the past week to work out a deal with lenders to stave off bankruptcy.

Carlyle Capital, based in Britain’s offshore dependency of Guernsey, said the only assets it has left are AAA-rated residential mortgage-backed securities, and it expected lenders to foreclose on this collateral. “It has become apparent that the basis on which lenders are willing to provide financing against collateral has changed substantially that refinancing is not possible,” Carlyle Capital said.