These are some excerpts from comments made by KKR on the commercial paper problem. In essence, they are continuing to try and find a solution:
-In talks with noteholders for past 2 weeks to determine if there is a path to a more definitive restructuring that benefits all parties
- As a result of those conversations, the noteholders have agreed to extend the maturity of the February 15 notes by two weeks so we can continue our negotiations.
- Will continue to work with the noteholders to determine if there is a further restructuring that will protect the noteholders and provide KFN shareholders the ability to recover some of the equity that was previously written off. If we cannot come to agreement with the noteholders, they will take the underlying collateral as contemplated by the October restructuring. It is worth noting that the collateral in the portfolio has continued to perform well since October
- The Company’s exposure to the residential mortgage market does not include any assets that are collateralized or backed by subprime residential mortgage loans. In addition, the Company does not have any off-balance sheet exposure to residential mortgage assets as the Company does not hold any investments in off-balance sheet structures such as structured investment vehicles or collateralized debt obligation
