CREDITORS suing collapsed Guernsey-registered Carlyle Capital Corporation for $1bn have been accused of cynically ‘shopping’ for a venue for a court hearing to improve their chances of success.

For the defence, Advocate Simon Davies told the Royal Court there was nothing in the plaintiff’s case to justify over-riding an investment contract which stated disputes should be dealt with in a Delaware court.

The Royal Court hearing has been called to determine whether the case should be held in Guernsey or Delaware.

The plaintiff, liquidator Begbies Traynor, argues that the directors of CCC and its parent company the Carlyle Group failed to manage it properly when it started to accumulate losses on toxic mortgage-backed securities in 2007. The company was placed into compulsory liquidation in Guernsey in March 2008 with losses of more than $1bn.

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