Lifemark declares bonds in default
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Lifemark has issued a notice to bondholders declaring that several bonds underpinning Keydata plans have defaulted on income payments.
The firm informed bondholders of the development on March 2 and Keydata administrator PricewaterhouseCoopers today confirmed that it will affect coupon payments for all 23,000 Keydata Lifemark investors who have around £349m invested.
Lifemark has suspended income payments to investors in order to preserve liquidity to maintain payments of insurance premiums under the existing policies.
It submitted an application to Luxembourg regulator, Commission de surveillance du secteur financier on January 31 to change the terms and conditions of existing bonds to zero coupon bonds to avoid having to make interest payments.
KPMG Advisory in Luxembourg was appointed last November for period of three months but this was extended by a further six months in February to allow directors to develop a possible restructuring plan for Lifemark to resolve liquidity problems.
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