Lifemark must find $11m from its dwindling coffers to repay with interest a £1.5m loan from Norwich & Peterborough (N&P) and $7.5m from CarVal, as both companies back out of providing longer-term funding.
The Keydata-backer borrowed the money last October to avoid a firesale of the traded life-settlement polices that make up the underlying assets of the fund, which is facing severe liquidity problems.
Both N&P and US hedge fund CarVal demanded nearly 15% interest on the loans to compensate for the high level of risk in providing the money, which must be paid back by 15 February.
At the end of the four months, at £20,000-a-month the N&P loan will have cost Lifemark £80,000, IFAonline understands.
In the same time, CarVal will have racked up a massive $400,000 in interest.
Both companies have now backed out of providing Lifemark with longer term funding.
Two other new potential investor companies are now engaged in due dilligence on rescuing Lifemark, IFAonline understands.
In better news for the fund, there has also been two mortalities in the Lifemark portfolio in the last few weeks, one of $10m which has been received, and one of $5m which is still awaiting deposit into the fund.
If no restructuring plan is in place by the time the N&P and CarVal loan's must be repaid, Lifemark has a strategy to sell a limited number of policies to maintain a certain level of necessary cash to avoid liquidation.
According to people familiar with the situation, this is "far from a description of a catastrophy scenario".
"If it is well planed and well monitored it can generate reasonable recovery", they said.
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