Joint Administrators’ Proposals & First Creditors’ Report

On 18 January 2007 the Joint Administrators sent out their first report to every creditor who had submitted a claim, including all agents and customers. Below is a link to the shortened version of the report sent to all customers and agents ("the Customers' Report"), along with a link to the full-length report that the Joint Administrators have filed at Companies House and the High Court ("the Creditors' Report").

The deadline for returning the pink voting forms in respect of the Joint Administrators' Proposals for the future of the Administration was 12 noon on 9 February 2007. Over 42,000 voting forms were received by the deadline and the results of the voting was as follows:

Resolution (a)
"that a creditors’ committee, as described in paragraph 13.2, be established to assist the Joint Administrators in discharging their function"
Result: Approved, with 98% of all votes in favour

Resolution (b)
"that the Joint Administrators continue to realise the property of Farepak in order to make a distribution to preferential creditors and have funds available for the unsecured creditors"
Result: Approved, with 98% of all votes in favour

Resolution (c)
"that the Joint Administrators exit the Administration by way of a Creditors’ Voluntary Liquidation and that Martha H Thompson and Dermot Power of BDO Stoy Hayward LLP be Joint Liquidators"
Result: Approved, with 97% of all votes in favour

Resolution (d)
"that the Joint Administrators’ remuneration be agreed on a time cost basis, subject to approval by the creditors’ committee, if appointed"
Result: Approved, with 96% of all votes in favour

Resolution (e)
"that, if no creditors’ committee is appointed, the Joint Administrators be discharged from liability under the Administration pursuant to Paragraph 98 of Schedule B1 of the Insolvency Act 1986 upon filing Form 2.34B (moving Farepak into Liquidation) and filing their final report"
Result: Approved, with 93% of all votes in favour

As directed by the Court, a letter was sent to all agents setting out the results and agents were asked to inform their customers. A copy of this letter is available below:

Voting Results Letter

Customers' Report

Creditors' Report

In addition, below is a link to the customer claim form:

Customer Claim Form

The Customers' Report stated that a Creditors' Guide to Administrators' Fees and a document which outlines the policy of BDO Stoy Hayward LLP in respect of fees would be available on this website. These documents are attached below.

Creditors' Guide to Administrators' Fees

Policy of BDO Stoy Hayward LLP in respect of Fees