Updated
Martha
H Thompson and Dermot Power of BDO LLP, Kings Wharf, 20-30 Kings
Road, Reading, Berkshire, RG1 3EX were appointed Joint Liquidators of Farepak
on 4 October 2007.
This
follows the appointment of Martha H Thompson and Shagun
Dubey of BDO LLP, Kings Wharf, 20-30
Kings Road, Reading, Berkshire, RG1 3EX as Joint Administrators over the assets
and business of Farepak on 13 October 2006.
The Insolvency Act 1986 states that the Joint Liquidators should report to all known creditors within three months of each anniversary of their appointment on 4 October 2007. Because of the costs involved in reporting to all the creditors, the Joint Liquidators applied to Court to ask if they could issue a shortened version of this report to all of Farepak's agents. The Court ordered that the Joint Liquidators could do this and this shortened report ("the 2009 Agents' Report") has been posted to all of Farepak's agents. If you are not an agent you will not have been sent a copy of the 2009 Agents' Report and you should either speak with your agent to get an update or, alternatively, the report is available to download below.
The full version of the report ("the 2009 Creditors' Report") is also available to download below.
Creditors’ Guide To Liquidators’
Fees
Policy of BDO LLP in
respect of fees
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 of 5p in the £1 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.
The Liquidators are continuing to work on the Liquidation to secure further monies for the benefit of all creditors. For example, the Liquidators have issued proceedings against a number of parties and the length of time this takes to resolve is in the hands of the Court.
For further information about the Trust, please see the Q&A section of this website.
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.
PLEASE NOTE THAT NO FURTHER MONEY SHOULD BE SENT TO FAREPAK. ANY ORIGINAL DOCUMENTATION SHOULD BE RETAINED AT
THE PRESENT TIME AND NOT SENT TO FAREPAK
If you have not already submitted a claim but wish to do so, please write to:
Claims Management Team, Farepak Food & Gifts Limited
- In Liquidation, PO Box 3404, Swindon, SN2 9EQ
We are not able to deal with changes of address over
the telephone for security reasons. If you have moved since submitting your original claim, please register your change of address by sending details of your name, your agent's number, the amount of your claim, your old address, your new address and your signature to:
Claims Management Team, Farepak Food & Gifts Limited
- In Liquidation, PO Box 3404, Swindon, SN2 9EQ
Legal
Proceedings against Third Parties
In May 2008, with the agreement of the Liquidation Committee, the Liquidators issued proceedings against a number of parties in an attempt to secure further monies for the benefit of creditors, which includes customers and agents. Because it is a legal action, neither the Liquidators nor the Liquidation Committee can provide any further information as this may prejudice proceedings and jeopardise the success of the case. From this point onwards the length of time this takes to resolve is in the hands of the Court.
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 are still expecting to pay
5p in the £ on the rest of the money that is owed to you. 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 of 5p in the £1. 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.
Please see below for answers to certain other
questions you may have.
1.
What is the report dated 14 October 2009?
This is the report by the Joint Liquidators
summarising what has happened in the second year of the Liquidation. A shortened version of this report (“the 2009 Agents’ Report”)
was posted to all of Farepak’s agents. If you are not an agent you will not
have been sent a copy of the 2009 Agents’ Report and you should either speak
with your agent to get an update or, alternatively, the report is available
to download from this website.
2.
Why are there two versions of the report?
The Court allowed the Joint Liquidators
to send a shortened version of the report (“the 2009 Agents’ Report”) to Farepak’s
agents because of the numbers involved and the costs of postage. Both the
2009 Agents’ Report and full length version (“the 2009 Creditors’ Report”)
are available to download from this website.
3.
Why wasn't there a meeting of creditors?
The Insolvency Act 1986 states that
the Joint Liquidators should hold a meeting of the creditors within three months of each anniversary
of their appointment. On 5 September 2008, the Court ordered that such meetings should not be held,
following the Joint Liquidators' application. The Joint Liquidators were concerned that agents and
customers who had already suffered a loss might have to take time off work and spend money on travelling
to a meeting and that the costs of hiring a venue large enough to hold the number of creditors would be
significant.
4.
Why haven’t I heard anything?
Due to the large number
of claims received and in order to keep administration costs as low as possible,
the Joint Liquidators (previously the Joint Administrators) are unable to
acknowledge each claim received at the present time.
5.
When will I get my money?
It is not yet possible
to confirm when a payment will be made to creditors, including agents and
customers. The Joint Liquidators are still pursuing monies for the benefit
of creditors. For example, the Liquidators have issued proceedings against a
number of parties and the length of time this takes to resolve is in the hands of the Court.
6.
How much will I be paid?
On present information, the
estimated dividend is likely to be in the region of 5p in the £.
7.
I have received a refund from my card provider - what should I do?
Please write to the Claims Management Team to
inform them of how much you have received and when. The address is Claims
Management Team, Farepak Food & Gifts Limited - In Liquidation, PO Box 3404, Swindon,
SN2 9EQ.
8.
Will I get my commission?
You will have a claim against Farepak
in respect of your commission and the Joint Liquidators will be working to calculate
this claim. You should include details of this claim when completing a claim form.
9.
I've still got some Choice vouchers, what should I do?
Please notify the Claims Management Team,
Farepak Food & Gifts Limited - In Liquidation, PO Box 3404, Swindon, SN2 9EQ as soon
as possible if you want to claim your dividend from the Administrators of Choice.
10.
A Farepak agent/customer has died. How do I notify you?
We are not able to deal with these notifications over the telephone for security reasons. If you wish to notify us of the death of an agent or customer, please send a copy of the death certificate and the new address for correspondence together with the agent's number (if known), to:
Claims Management Team, Farepak Food & Gifts Limited - In Liquidation, |