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.
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.
Once they had completed this work, the Liquidators sent cheques out. These cheques are 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 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.
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 had money returned
as a result of the Judge's ruling on 31 July 2009 about the Trust.
Whether or not you received a cheque was based on the information
you and your Agent provided to the Liquidators.
2.
Can I provide information about when I paid money to Farepak now?
The Judge's decision was final and it is not therefore 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?
All cheques were sent out on 21 September 2009.
4.
I have received 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 received from the total amount of money you paid Farepak,
you will have a claim against Farepak for what is left. You do not have to write to tell us about this. We will sort this out for you and in October 2010 we confirmed the amount we think you are owed to your agent. If you wish to check the amount of your claim you should speak with your agent.
5.
Will the ruling on the Trust monies affect a dividend payment?
This ruling will not affect the estimated
dividend. However anyone who received a cheque has had 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 did not match exactly.
If that was the case, the Court told the Liquidators that they should send you part of the money
paid to Farepak.