A $60bn hedge fund is among four bidders for the assets of life settlements fund ARM Asset Backed Securities.
In a letter sent to investors in the stricken fund, the ARM board said the bidders had until 27 April to table an offer.
Interested parties are said to include "a specialist in the management of sophisticated and alternative assets, already operating a life settlement fund, and a hedge fund which currently has more than $60bn under management."
Life settlement specialist Insetco, whose previous bid lapsed in December, is also preparing to table an offer, along with Life Settlement Consulting Limited.
The board warned bondholders of speculating on the identities of the two bidders, saying it "wished to avoid any of the unnamed interested parties removing themselves from the process as happened in Keydata, where Seaport Group pulled out of the process after its name was prematurely released as a bidder."
ARM also confirmed it was seeking FSA intervention, requesting the regulator "permit the board to move the frozen funds to a high interest bearing account."
The FSA froze funds held in the UK in November.
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