The bonds underpin a number of plans provided and administered by Keydata Investment Services.
The Commission de Surveillance du Secteur Financier is considering the proposal from Lifemark’s board of directors to restructure the firm’s debt which was submitted on January 31. Today it suspended the Lifemark securities from trading on the Luxembourg Stock Exchange.
In an update today the CSSF says: “This proposal would, if accepted by the CSSF, be forwarded to the trustee who will be asked to waive immediate coupon payments for the bonds and eventually arrange for the bondholders to vote on the debt restructuring proposed by the board.”
In a FSA update, the regulator says the CSSF will consider whether the proposal will ensure that investors’ monies are recovered or whether it would be in their best interests to pursue liquidation under Luxembourg securitisation law.
Investors have experienced ongoing delays with Keydata plans invested with Lifemark of which there is approximately £349m invested. In November KPMG was appointed provisional administrator as an oversight appointment for “auditing, initiative and investigation.”
It is understood that Keydata founder Stewart Ford set up Lifemark with other business associates and he remains a shareholder.
Further updates will be published on the FSA website.