Shortly before Farepak went into Administration the directors of Farepak tried to set up an arrangement (known as a “Trust”) so that money paid into Farepak’s bank account on 11 October 2006 or later could be returned to Customers who had paid that money. Unfortunately the Trust was not set up properly and the Administrators were advised by their lawyers that the Court would have to decide whether there was a Trust at all, and if so, to whom the monies should be paid.
There was a Court hearing in December 2006 where the Judge said that he thought only money handed over by Customers to Agents on or after 11 October 2006 which the Agents then paid to Farepak on 11 October 2006 or later could be in the Trust. The Judge also said that he needed information on when Customers made their last payment to their Agent and when the Agent made their last payment to Farepak.
Since then, the Liquidators' staff and the claims management team have built a database of Customers who paid money on or after 11 October 2006. All the forms submitted by Agents and Customers have been reviewed to find out when those monies were paid to the Agent by a Customer.
In the report to all creditors, including Customers and Agents, in October 2008 the Liquidators stated that the Court hearing was to be in 2009.
On 31 July 2009 the Judge made a final ruling ordering that payments should be made to various Customers and Agents after the Liquidators had carried out some final checks. These checks were completed and the Liquidators have sent cheques to customers whose Trust claims were accepted by the Court.
The Liquidators began to despatch cheques on 21 September 2009 and Customers and Agents whose Trust claims were accepted by the Court should by now have received their cheques. These cheques were not dividend payments and the ruling will not affect the estimated dividend payment but any Customer who was sent a cheque will have their claim reduced to take into account that they have received a cheque from the Trust.
For further information about the Trust, please see the Q&A section below
If you have any queries about the Trust monies please write to: Claims Management Team, Farepak Food & Gifts Limited - In Liquidation, PO Box 3404, Swindon, SN2 9EQ. Alternatively, you can contact the Claims Management Team by phoning 0800 328 3791.
Frequently Asked Questions about the Trust monies ruling on 31 July 2009
1.
Why have I not received a cheque from the Trust?
A small number of Customers have had money returned
as a result of the Judge's ruling on 31 July 2009 about the Trust.
Whether or not you have received a cheque is based on the information
you and your Agent have provided to the Liquidators.
2.
Can I provide information about when I paid money to Farepak now?
The Judge's decision was final and therefore it is not possible
for the Liquidators to consider further evidence provided by Customers or Agents in relation to the Trust monies.
3.
If I am entitled to money from the Trust, how will I get my money back?
The Liquidators began to despatch cheques on 21 September 2009 and Customers and Agents affected should by now have received their cheques.
4.
I am expecting a cheque to cover money paid in on or after 11th October 2006 but what happens to the rest of the money I paid in during 2006?
Once the Liquidators have taken
the amount of any cheque you receive from the total amount of money you paid Farepak,
you will have a claim against Farepak for what is left. We will sort this out for you.
You do not have to write to us to tell us about this.
5.
Will the ruling on the Trust monies affect a dividend payment?
This ruling will not affect the estimated
dividend. However anyone who receives a cheque will have their claim reduced to
take into account the money returned to them as a result of this ruling.
6.
Why has it taken this long to return money to Customers who paid money to a company which wasn't even trading?
Because the Trust was not set up properly
the Court had to decide whether there was a Trust and who should be paid from the money in the Trust.
Unfortunately it sometimes takes a long time for courts to decide cases.
7.
Why haven't I received all the money I paid in after 11 October 2006?
You may not have received all the money you
told the Liquidators you paid Farepak after 11 October 2006 because in some cases, the amount claimed
by all the Customers of an Agent and the amount paid to Farepak by the Agent do not match exactly.
If that is the case, the Court has told the Liquidators that they can send you part of the money
paid to Farepak.