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

Farepak Website Updated 17 July 2012

http://www.farepak.co.uk/

Unfairpak can advise that the cut off date for registering claims, updating names, changes of address etcetera has been extended until 7 August 2012 due to the volume of calls, emails etcetera by customers querying various points.

Please note that a PHOTOCOPY will suffice when you have to provide copy death certificate.

Same applies for a Marriage Certificate, a PHOTOCOPY will suffice.

Cheques will now begin to go out in September instead of August.

Updated 17 July 2012

 

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.

Extension of Final Deadline to Submit Customer and Agent Claims

Following the announcement that the Joint Liquidators will be making dividend payments to creditors, including customers and agents, a number of people have asked for additional time so that they can make sure they have sent in their claims and have updated their personal details.

The Joint Liquidators can confirm that they will give customers and agents an additional three weeks, up to 7 August 2012, to make sure their claims and details are correct.

Because customers and agents are being allowed this extra time, this will mean that the Joint Liquidators will send out cheques during September.

Customers and agents who need to contact the Claims Management Team to submit a claim or to update their details should do so by 7 August 2012 by writing to Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404, Swindon, SN2 9EQ.

After 7 August 2012, the Joint Liquidators will begin the process of producing cheques and all of the money held by the Liquidators will be paid to creditors, including customers and agents, during September. This will mean that the Joint Liquidators will not be able to accept new claims from customers and agents that are sent in after 7 August 2012.

Joint Liquidators announce dividend payment

The Joint Liquidators of Farepak have announced that they will be making dividend payments to Farepak’s creditors, including customers and agents. In addition, the Joint Liquidators will at the same time distribute the £8million ex-gratia payment to customers and agents made by Lloyds Banking Group. The ex-gratia payment will be issued by the Joint Liquidators at no additional cost. The dividend payment – approved by the Liquidation Committee – marks the end of the liquidation of Farepak for creditors.

The Joint Liquidators have been working throughout the liquidation to recover as much money as possible for creditors as directed by the Liquidation Committee, which was set up by court order to represent all those who lost money as a result of the collapse of Farepak. This work has required the Joint Liquidators to investigate a number of possible claims and engage in legal proceedings with third parties. The Joint Liquidators have now finished their investigations and recovered as much money as possible for creditors and are in a position to pay a dividend.

Farepak collapsed leaving no money to pay a dividend to its creditors. The Joint Liquidators are now able to confirm that a payment will be made to customers and agents of approximately 32p in the £. This sum includes the dividend payment of approximately 13p in the £ secured by the Joint Liquidators and the £8million ex-gratia payment made by Lloyds Banking Group. The Joint Liquidators will aim to make payments to Farepak’s 114,000 creditors during September.

When added to the 17.5p in the £ given to all customers and agents by the Farepak Response Fund charity, set up by the Department for Trade and Industry in 2006, the dividend payment means that customers and agents of Farepak will have received a total of approximately 50p in the £.

Further details on dividend payments

By law, the Joint Liquidators must take certain steps during the time between the announcement of the dividend payment, and when the cheques are sent out to all creditors including customers and agents.

The Joint Liquidators have also agreed to give customers and agents an extra three weeks to allow them to provide information about their claims and to update their personal details.

Based on the time needed to complete the above, the Joint Liquidators will aim to make payments during September.

 

1. How much money will I get? 

The work undertaken by the Joint Liquidators has increased the dividend payable to approximately 13p in the £, compared to nothing when Farepak went into administration. The Joint Liquidators will also distribute the £8m ex-gratia payment to customers and agents made by Lloyds Banking Group at the same time as the dividend payments, This will mean that customers and agents will receive a total payment of approximately 32p in the £.

This will mean that, for example:

– a customer or agent with a claim of £100 will receive approximately £32;

– a customer or agent with a claim of £500 will receive approximately £160; and

– a customer or agent with a claim of £1,000 will receive approximately £320.

The Joint Liquidators will aim to make payments to Farepak’s 114,000 creditors during September.

 

2. Why are payments being made by cheque, and not directly into bank accounts?

 

The Joint Liquidators are making the dividend payments by cheque because it is the best way of ensuring the money reaches the right person in this case.

 

3. Is this the final payment I will receive?

 

The dividend payment is the total and final payment that will be made to creditors. The dividend payment marks the end of the liquidation of Farepak for creditors, including customers and agents.

 

4. Why has the estimated dividend changed?

 

As with all administration and liquidation processes, it is not possible to calculate the exact dividend payment until all monies are recovered, the final number of creditors is known and all work is completed. For this reason, all dividend figures that have been shared by the Joint Liquidators (formerly Joint Administrators) to date have been based on projections and clearly set out as estimates.

 

As directed by the Liquidation Committee, which was set up by court order to represent all those who lost money as a result of the collapse of Farepak, the Joint Liquidators have been working throughout the course of the administration and liquidation to recover as much money as possible for creditors, including customers and agents. This work has required the Joint Liquidators to investigate a number of possible claims and engage in legal proceedings with third parties. The Joint Liquidators have now finished their investigations and are in a position to pay a dividend.

 

The work undertaken by the Joint Liquidators has increased the dividend payable to approximately 13p in the £, compared to nothing when Farepak went into administration. The Joint Liquidators will also distribute the £8million ex-gratia payment to customers and agents made by Lloyds Banking Group at the same time as the dividend payment. This means that customers and agents will receive a total payment of approximately 32p in the £.

 

Changes of personal details

 

Changes of name

 

Creditors who have changed their name since submitting their original claim but not notified the Claims Management Team should register their change of name by sending details of their name, their agent’s number, the amount of their claim, a copy of their marriage certificate or copies of other documentation and their signature to Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404, Swindon, SN2 9EQ by 7 August. The Claims Management Team is not able to deal with changes of name over the telephone or via email for security reasons. The Joint Liquidators can confirm that customers and agents do not need to send in original certificates.

 

 

Changes of address

 

Creditors who have changed their address since submitting their original claim but not notified the Claims Management Team should register their change of address by sending details of their name, their agent’s number, the amount of their claim, their old address, their new address and their signature to Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404, Swindon, SN2 9EQ by 7 August. The Claims Management Team is not able to deal with changes of address over the telephone or via email for security reasons.

 

Notification of customer / agent death

 

We are not able to deal with notifications of death 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, PO Box 3404 , Swindon, SN2 9EQ. The Joint Liquidators can confirm that customers and agents do not need to send in original certificates.

 

Report to Creditors

Please click here for information about the 2011 report to creditors

Trust Monies

Please click here for information about the Trust monies ruling on 31 July 2009.