The news continues to get worse for KKR Financial Holdings. It already has been forced into a $270 million rescue plan, with managing partner Henry Kravis himself kicking in some money. Now, the Financial Times reports that KKR Financial has deferred debt repayments that were due last Friday, and that the company is in talks with creditors. KKR Financial used something called secured liquidity notes to fund a massive investment in "Alt-A" loan-backed securities, which of course have been hit hard. This has left the company's investors in a tough spot. While they have the right to take back their money on short notice, some may want to ride it out.

For more:
- here's the Financial Times article

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