Norwich & Peterborough and CarVal offer £1.5m Lifemark loan

Norwich & Peterborough Building Society (N&PBS) and the American hedge fund CarVal have made a £1.5m loan facility available to administrators of Keydata’s Lifemark unit.

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 (FSCS). (article continues below)

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 Financial Services Authority 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.