KPMG Luxemburg postpones meeting to decide Lifemark fate

Lifemark provisional administrator KPMG Luxemburg has postponed a bondholder meeting set for this week which was to decide the fate of the life settlement vehicle.

Money Marketing understands the meeting is likely to be reconvened for January.

Negotiations are under way to resurrect the $150m loan facility arranged by Keydata founder Stewart Ford to take Lifemark out of administration. Lifemark provisional administrator KPMG Luxemburg was presented with the loan offer in August.

The Financial Services Compensation Scheme and other Lifemark bondholders were originally due to vote this week on whether to accept the loan or put Lifemark into liquidation. Ford has argued the loan would enable Lifemark bondholders, including the FSCS, to be repaid. The Lifemark FSCS levy cost the industry £326m, with advisers paying £93m.

Last week, the US lender behind the loan arranged by Ford withdrew funding on the grounds that the lender’s name was made public. This meant if the bondholder meeting went ahead as planned, bondholders would vote on the liquidation proposal only.

It is understood that KPMG is waiting for confirmation from the US lender that the loan is back on the table.

Zia Hossen of KPMG Luxemburg, who has replaced Eric Collard as provisional administrator ahead of Collard leaving KPMG at the end of the year, sent an email, seen by Money Marketing, to Lifemark trustee SMP Partners earlier this week adjourning the meeting.

Eric Collard declined to comment. The FSCS was unavailable for comment.