The latest wave of financial turmoil has crippled $27bn (€19.4bn) London-based investment fund Sigma Finance Corp, raising concerns that a messy sale of its assets could weigh on wobbly markets.

In a sign of the repercussions of last month's demise of securities firm Lehman Brothers, Sigma faced imminent liquidation Wednesday after a drop in the value of its investments, which included Lehman debt, forced it to default on its borrowing agreements.