Share-trading in the troubled fund, linked to private equity giant Carlyle Group, was suspended in Amsterdam Friday, resumed briefly Tuesday and was then suspended again due to the flood of sell orders.
"Although it has been working diligently with its lenders, the company has not been able to reach a mutually beneficial agreement to stabilize its financing," Carlyle said in a statement.
"The company expects that its lenders will promptly take possession of substantially all of the company's remaining assets," the statement said.
The only assets still under its control were US government agency AAA-rated residential mortgage-backed securities, it said.
Over the last seven business days Carlyle received margin calls of more than 400 million dollars that it was unable to honor, it said.
"In total, through March 12, the company has defaulted on approximately 16.6 billion dollars of its indebtedness.
The remaining indebtedness is expected soon to go into default," the statement said.