Move from Administration to Creditors’ Voluntary Liquidation

On 4 October 2007 , Form 2.34B, being notice of Farepak’s move from Administration to Creditors’ Voluntary Liquidation, was filed at Companies House.  This means that Farepak is now in Liquidation and Martha H Thompson and Dermot Power have been appointed as Joint Liquidators, a course of action approved by 97% of Farepak’s creditors, including agents and customers, following the Joint Administrators’ proposals.

The Joint Administrators have carried out the limited investigations which they are allowed to by law.  Now that Farepak is in Liquidation, the Liquidators have greater powers to investigate the circumstances surrounding the failure of Farepak and can take action against any parties which may increase the money available for creditors.  A Liquidator can also agree unsecured creditor claims and pay a dividend to unsecured creditors.

By law, the Joint Liquidators do not have to report to Farepak’s creditors, including agents and customers, until the anniversary of their appointment, i.e. October 2008.  The Joint Liquidators will, however, carry on using this website as a way of updating all of Farepak’s creditors, just as the Joint Administrators did.

Final Progress Report

The Insolvency Act 1986 states that the Joint Administrators should report to all known creditors within four weeks of the six month anniversary of their appointment on 13 October 2006 .    Because of the costs involved in reporting to all the creditors and because a report had been issued in January 2007, the Joint Administrators applied to Court to ask if they could delay the issue of the next report.  The Court ordered that the Joint Administrators could send this when they were ready to finish the Administration.

This report (“the Final Creditors’ Report”) has been filed at Companies House and at Court and a copy is available to download below.  A shortened version of this report (“the Final Agents’ Report”) was posted to all of Farepak’s agents on 15 October 2007 .  If you are not an agent you will not have been sent a copy of the Final Agents’ Report and you should either speak with your agent to get an update or, alternatively, the report is available to download below.

Please note that the Form 2.34B attached to the report is for reference only and SHOULD NOT be forwarded to Companies House.

Final Agents’ Report

Final Creditors’ Report

Creditors’ Guide To Administrators’ Fees

Policy of BDO Stoy Hayward LLP in respect of fees