An adviser consortium led by Norwich & Peterborough Building Society is hoping to secure a bailout of Keydata’s Lifemark early next week, Money Marketing understands.
N&PBS chief executive Matthew Bullock and Lifemark’s administrator, Eric Collard of KPMG Luxembourg, are understood to have agreed a short to medium-term package of debt facilities.
Talks over the legalities of the deal are expected to extend into the weekend and are not guaranteed to succeed. If they fail, Lifemark policies will start lapsing on Thursday next week.
The bailout would have to be large enough to cover the $3.5m-$4m a month of premium payments needed to keep Lifemark’s traded life settlement bond portfolios from becoming worthless.
Talks with another consortium of Keydata bondholders have ended after the administrators and the Lifemark board rejected their demands.
However, US hedge fund CarVal, which previously walked away from Lifemark talks after the administrators thought its demands were too onerous, is back in talks over possibly contributing to the final bailout package.
The Financial Services Compensation Scheme announced on September 28 that up to 23,000 savers who invested £349m in Lifemark would be eligible for compensation up to the £48,000 FSCS limit.