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Norwich & Peterborough and CarVal offer Lifemark loan

Norwich & Peterborough Building Society has made a £1.5m loan facility available to administrators of Keydata’s Lifemark unit.

US hedge fund giant CarVal has also contributed another, as yet undisclosed, amount.

The loan has been provided to cover premium payments on traded life settlements owned by Lifemark that were set to lapse as early as Thursday. The firms will charge “an interest rate commensurate with the risk profile of the loan”.

The loan offer will come as a relief to Lifemark investors, who were placed in its funds via failed group Keydata, who invested over the £50,000 limit of compensation they can receive from the Financial Services Compensation Scheme.

The facility has been made available until February 15, 2011 or upon completion of a successful restructuring of Lifemark.

A statement from N&PBS says the loan will cover premium payments and “certain other operating expenses falling due” while the final restructuring plan is formulated.

It says the loan will be secured over the Lifemark portfolio, adding the FSA has been informed.

It says: “The Lifemark Loan is one of a number of dimensions to the Keydata situation.”

CarVal had previously walked away from talks with Lifemark’s administrators KPMG.


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. What is the point?

  2. The N&PBS are walking a tight-rope with Keydata. As a Society reliant entirely upon its members, I wonder what the general consenus will be with the loaning of such monies to Lifemark.

    Having spoken to hundreds of N&PBS members, Lifemark and Keydata is a million miles away from the direction they believe the Society should be taking.

    Michael Cotter
    Regulatory Legal LLP
    01384 426 400

  3. Deal with the Devil
    Moral hazard in investing in the premature death of others.
    Turned into a survival hazard for N&P?

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