Lifemark thrown a lifeline of six more months to secure £18m rescue funding
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Lifemark administrator KPMG Luxemburg has been given an extra six months to resolve ongoing liquidity issues and prevent Lifemark from going into administration, Money Marketing understands.
The Financial Services Compensation Scheme and the Investment Management Association are currently in talks to provide a loan facility to Lifemark of at least £18m to meet the policy premium payments and cover operating costs of the life settlements for 2011.
A lack of mortalities in March and April has meant Lifemark is facing an urgent liquidity issue. Estimates suggest maturing policies can fund premium payments for 2012 but 2011 payments are at risk. Money Marketing understands a loan is expected to be agreed by August.
In February, KPMG Luxemburg was granted an additional three months to secure funding for Lifemark and maximise the value of Lifemark life settlement portfolios.
In October, US hedge fund CarVal and Norwich & Peterborough Building Society loaned Lifemark £7.8m to meet premium payments, which was repaid.
Lifemark administrator Eric Collard of KPMG Luxemburg, the IMA and the FSCS declined to comment.
Yellowtail Financial Planning managing director Dennis Hall says: “The bit of extra time that has been given to Lifemark may prove helpful. If the potential result of the FSCS and the IMA providing a loan is a better outcome for everybody, I think enough time should be given to evaluate that option properly.”
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