N&P and CarVal loan will cost Lifemark $11m

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 com...