Keydata International Fund Redemptions Suspended
Posted March 03, 2010 1:51PM PST

Redemptions from the Keydata International Fund SPC have been suspended as a result of defaulted payments from the fund's Lifemark life settlement bond assets as well as other illiquid assets, the fund's board of directors said.

"The Illiquid Assets were purchased in good faith by the Fund in 2009," the directors said in a statement to investors yesterday. "However, it was subsequently discovered that the Illiquid Assets did not match the description that had been given to the Fund and there is now a question as to whether and to what extent the Fund will be able to realize value from these assets."

Yesterday, Luxembourg-based Lifemark told investors that its bonds were in default after it did not make interest payments due this month. Lifemark, which is in the process of developing a restructuring plan, said it is trying to apply remaining cash toward life insurance premiums to preserve the value of its portfolio rather than pay income.

In addition, the fund's auditor, PricewaterhouseCoopers, has resigned and the board is in the process of appointing new auditors, the Keydata board said.

Sources: Keydata International Statement, Lifemark Statement, Lifemark Statement


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