It is understood CarVal has proposed a £40m loan to Lifemark to pay premiums on life insurance assets held by the Luxemburg-based vehicle and ret-urn only the original capital to investors over a 14-year timeframe depending on the performance of Lifemark assets.
Baronsworth Investment Services director Colin Jackson says: “You cannot expect people in their 70s and 80s to wait 14 years for a full investment return.”
Lowes Financial Management managing director Ian Lowes says: “It sounds like a nightmare. The firesale of the assets must be nowhere near the amount nee-ded to give the original capital back and it seems like the original model must have been horrendously wrong.”
CarVal Investors was unavailable for comment.