US hedge fund CarVal’s is understood to be contributing £6.3m to the package of debt facilities being made available for stricken Lifemark.
The CarVal facility combines with £1.5m pledged by Norwich & Peterborough Building Society to form an ‘overdraft’ for Lifemark of £7.8m.
Lifemark’s administrators KPMG Luxembourg will use the facilities to meet the £2.2m-£2.5m a month of premium payments needed to prevent its traded life settlement policies from lapsing.
They are designed to provide KPMG with enough time to nail down a permanent Lifemark restructure.
The debt facilities come just in time to head off policy lapses that were expected to begin on Thursday, threatening the investments of the 23,000 UK savers who were invested in the Lifemark policies by failed group Keydata. The efforts to keep Lifemark afloat are of most importance to investors who handed over more than the £50,000 Financial Services Compensation Scheme Limit.
In a statement yesterday N&PBS said its facility will charge “an interest rate commensurate with the risk profile of the loan”.