The Commission de surveillance du secteur financier has extended the administration of Lifemark, which underpinned Keydata’s defined income plans.
KPMG was appointed as provisional administrator of Lifemark in November for period of three months and has now been given “the most extensive management powers” to control and monitor its activities.
The CSSF says the decision follows its receipt of KPMG’s report on its first mandate.
Earlier this month Lifemark submitted an application to the Luxembourg regulator to change the terms and conditions of existing Lifemark bonds to zero coupon bonds which would no longer oblige them to provide interest payments to investors.
On the latest annoucement the CSSF says: “It is important to understand that this measure does not prevent Lifemark, now under the sole management powers of the provisional administrator, to further develop a possible restructuring plan that must still be accepted by the CSSF. The court has also confirmed that the measure of 11 February 2010 in itself is not to be considered as an insolvency procedure such as bankruptcy, controlled management, a procedure of suspension of payments or judicial liquidation.”