Crucial Lifemark vote to be delayed
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Lifemark provisional administrator KPMG Luxemburg has effectively adjourned the bondholder meeting set for later this week which was to decide the fate of troubled life settlement vehicle.
An email detailing the move was sent last night by Zia Hossen of KPMG Luxemburg, who has replaced the outgoing provisional administrator Eric Collard ahead of Collard leaving KPMG at the end of the year.
The email, seen by Money Marketing, says: “I have received both directly and through the Trustee, a number of requests to postpone the meeting scheduled for November 10.
“Having considered the circumstances carefully, I have decided that the meeting should be opened and then immediately adjourned or dissolved at the discretion of the chairman. Although the meeting will be opened, I stress that no business will be conducted.”
Hossen also suggests the $150m loan facility arranged by Keydata founder Stewart Ford to take Lifemark out of administration could be resurrected.
Last week the US lender behind the loan to cover outstanding premiums at risk due to Lifemark’s current liquidity crisis withdrew its funding offer.
The loan was arranged by Keydata founder Stewart Ford and managed by a company called Seaport. Money Marketing understands the loan was withdrawn after the lender’s name was put in the public domain together with commercially sensitive lending rates.
Since proposing the loan in August, Ford has argued the loan would enable Lifemark bondholders to be repaid. The Financial Services Compensation Scheme is a principal bondholder of Lifemark bonds as it took over investors’ rights when it paid out compensation to Lifemark investors.
If bondholders were to be repaid the FSCS would recoup the industry money it has paid in compensation over Lifemark. The Lifemark FSCS levy cost the industry £326m, with advisers paying £93m.
The FSCS and bondholders were due to vote this Thursday on whether the loan should be accepted, or whether Lifemark should be put into a controlled liquidation.
Hossen’s email adds: “I have also been made aware, indirectly, that a new proposal may be made relating to the Seaport loan, which would necessitate a new meeting being called. As at the date of this email, I have not received any formal communication or direct notice of this proposal.
“Consequently, and depending on whether a new proposal is obtained, new communications will be issued to bondholders, especially in relation to the date of a new meeting.”
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