FAREPAK DIVIDEND 35 PENCE IN £ NOW IN POSTAL SYSTEM

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 Food & Gifts Limited on 4 October 2007 Farepak Food & Gifts Limited Correspondence Address: Claims Management Team, PO Box 3404, Swindon, SN2 9EQ Registered Office: BDO LLP, Kings Wharf, 20-30 Kings Road, Reading, RG1 3EX Registered Number: 4740401 1 October 2012 Farepak Food & Gifts Limited – In Creditors’ Voluntary Liquidation (“Farepak”)

 

The Joint Liquidators of Farepak have today sent cheques to Farepak’s agents and customers. Below are some answers to questions you might have about the amount you were owed by Farepak or the cheque you have received.

 

What is the cheque that I have received?

 

The cheque is a final payment in relation to your claim in the Liquidation of Farepak.

 

How much have I been paid?

 

You have been paid approximately 35p for every £1 you were owed by Farepak.

 

How is the amount of the cheque made up?

 

The sum of money on the cheque you have been sent is made up of two parts: • A payment, known as a dividend, of approximately 14p in the £ from the Liquidation. • An ex-gratia (voluntary) payment by Lloyds Banking Group of approximately 21p in the £.

 

Why have I not received all of my money back?

 

When Farepak collapsed, there was no money in its bank account to pay back the agents and customers – known as ‘creditors’ – who had been saving money. As a result of the work done by the Liquidators, enough money has been recovered, in addition to the voluntary payment by Lloyds Banking Group, to send you this cheque.

 

Will I get any more money?

 

This payment represents all the money that is available to pay to Farepak’s creditors, which includes agents and customers. You will not receive any further payments.

 

How was my claim worked out?

 

Your claim was worked out from the forms you and your agent previously filled in and returned to the Liquidators, and from looking at the information that was in Farepak’s records at the time Farepak went into Administration.

 

Can an agent or customer provide new details of their claim now?

 

The claims have been finalised so it is not possible to provide new evidence now. If new claims are made now we will not be able to pay them.

 

What has happened during the Liquidation?

 

When Farepak collapsed, there was no money in its bank account to pay to its creditors, which includes agents and customers. As ordered by the Court and approved by Farepak’s creditors, including agents and customers, a Liquidation Committee was set up. This is a group of people who were owed money by Farepak and who represent all those who lost money as a result of the collapse of Farepak, including representatives of the agents and customers. As directed by the Liquidation Committee, we have been working throughout the course of the Administration and Liquidation to recover as much money as possible. The Liquidation Committee asked the Liquidators to do certain work, including taking legal action, to try to get money for the benefit of Farepak’s creditors, including agents and customers. This work can take a long time but is now finished. As a result of the work done by the Liquidators, enough money has been recovered to send you the dividend payment of approximately 14p in the £. In addition the Liquidators have sent out an exgratia (voluntary) payment by Lloyds Banking Group of approximately 21p in the £.

 

How long do I have to bank my cheque?

 

You will need to bank your cheque within 6 months of the date on the cheque.

 

I have changed name so cannot bank the cheque. What should I do?

 

Please send your cheque back and send us evidence of your change of name, for example a copy of a marriage certificate. These should be sent to: Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404, Swindon, SN2 9EQ. We can then arrange for a replacement cheque to be sent to you.

 

A Farepak agent/customer has died. What should I do?

 

In order for a new cheque to be sent to the agent’s or customer’s next of kin, please return the cheque and provide a copy of the death certificate. These should be sent to: Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404, Swindon, SN2 9EQ. We can then arrange for a replacement cheque to be sent to you.

 

I have read about a further 17.5p paid by the Farepak Response Fund in 2006, bringing the total paid to approximately 50p in the £. What is this?

 

Some vouchers and hampers were sent out by a charity called the Farepak Response Fund in 2006. The Joint Liquidators were not involved with this process and have no more information on it so cannot help further.

 

Additional Information By law, the Joint Liquidators are required to set out some additional information about the Liquidation: • The total amount distributed by the Liquidators is approximately £5.5 million. In addition, an £8 million exgratia (voluntary) payment made by Lloyds Banking Group was sent out by the Liquidators. • There are no unsettled claims and no funds have been retained other than to meet the final expenses of the Liquidation. • There will be no further dividend payment available following this first and final dividend payment. • A summary of the Liquidators’ Receipts and Payments can be viewed on the Farepak website (www.farepak.co.uk). More detailed information about the Liquidation can be viewed on the Farepak website (www.farepak.co.uk). If you have any questions about your cheque, please contact the Claims Management Team using the details below: Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404, Swindon, SN2 9EQ claims@farepak.co.uk