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N&P and CarVal back out of further Lifemark deal

Norwich & Peterborough Building Society and US hedge fund CarVal have backed out of discussions to provide a further $20m of funding to Lifemark, Money Marketing understands.

N&P and CarVal joined forces last year to provide an initial $10m to the stricken life settlement fund provider, £1.5m of which was contributed by N&P. It is understood that talks on a further package have collap-sed amid fresh concerns over its solvency.

KPMG, the administrators of Lifemark, have been left hunting for new backers to ensure its ongoing liquidity. UK investors’ savings of £349m were placed with Lifemark via Keydata.

If KPMG is able to save Lifemark, the Financial Services Compensation Scheme may eventually be able to repay the levy on intermediaries to cover the cost of compensating the firm’s investors.

The size of the levy is to be announced this month and is expected to exceed the £100m limit for the sub-class.

A N&P spokeswoman says: “The £1.5m loan that is in place is what was agreed to in October and we are honouring what we said we would provide. We have also indicated that we are willing to be involved in support if a new facility is put in place.”

CarVal was unavailable for comment.

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