Keydata Lifemark
Keydata Lifemark clients wait for restructure plan
Thousands of Keydata clients with life settlement products invested with Lifemark face a further wait to discover if they will recover their money as the company’s directors continue to work on a restructuring plan.
Lifemark announced on March 2 that a number of bonds underpinning several retail investment products provided and administered by Keydata had defaulted. As a result, 23,000 investors with £349m in these products will not receive the income payments due to them.
The bonds invest in life policies which require continuing premium payments. Lifemark believes is in the best interests of bondholders to use the remaining cash available to pay insurance premiums rather than making interest payments under the bonds, in order to preserve the value of the Lifemark portfolio.
The problem centres on mortality claims which have not occurred in line with expectations and therefore Lifemark’s advisers were made aware of the need for improved cashflow or amendments to the original aims of the bond.
Provisional administrator KPMG Advisory was appointed on November 20. Luxemburg regulator, the Commission de Surveillance du Secteur Financier is still considering a restructure proposal submitted by Lifemark on January 31.
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Money Marketing Keydata Restructure Plan
