|Farepak Response | Farepak liquidation|
|Registered Company Number. 5995324. Registered Charity Number. 1116756
Site last updated on 30th November 2006 18:25
Martha H Thompson and Dermot Power of BDO Stoy Hayward 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 Stoy Hayward 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.
Report To Creditors
The Insolvency Act 1986 states that the Joint Liquidators should report to all known creditors within three months of the 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 2008 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 2008 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 report (“the 2008 Creditors’ Report”) is also available to download below.
The Insolvency Act 1986 states that the Joint Liquidators should hold a meeting of the creditors within three months of the anniversary of their appointment. On 5 September 2008, the Court ordered that such a meeting 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.
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.
Historically, any money paid to Farepak by customers was not held in a separate bank account but shortly before Farepak went into Administration, the directors of Farepak tried to establish a Trust so that money paid by Farepak's customers after 11 October 2006 could be returned to customers if Farepak went into an insolvency process. The Trust was not set up properly and the Administrators applied to Court for help in sorting out the monies which were paid into the bank or a post office after 11 October 2006 .
The Court ruled that, because the agents were agents of Farepak, the Joint Liquidators (previously the Joint Administrators) would need to prove when the monies were paid to the agent by the customer as well as when they reached Farepak's bank account. The hearing was adjourned to allow the Joint Liquidators (previously the Joint Administrators) to find a cost effective way of identifying whose money was whose.
The Joint Liquidators have now submitted all the papers to Court and the case is due to be heard in 2009. The length of time this takes to resolve is in the hands of the Court.
The Joint Liquidators will use this website to keep creditors, including agents and customers, updated of any progress regarding these monies.
Customer & Agent Claims
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.
In the meantime, if you have not already done so please send notice of any claim you may have:
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
In a significant number of cases there are differences between the claims submitted by customers and the total claim submitted by their agent. These differences have to be investigated and to date it has been possible to delete duplicate claims and errors totalling approximately £3.5 million, which will increase the dividend payable to creditors, including agents and customers.
The Claims Management Team are in the process of contacting agents and customers who have not yet submitted a claim or whose claim requires further supporting information. If you receive a letter, it would be most helpful if you could respond as soon as possible to allow the Claims Management Team to deal with your claim promptly.
Move from Administration to Creditors’ Voluntary Liquidation
Joint Administrators’ Proposals & First Creditors' Report
Please click the link below for further information regarding the voting results for the Joint Administrators’ Proposals and the first report to creditors (issued in January 2007), including copies of both the shortened version and full length version of this report.
The Farepak Response Fund received various donations after the closing date of 29 November 2006 and with this we have been able to buy partially made up hampers that were in the Farepak warehouse.
Not all the goods that were ordered had been delivered to Farepak. However, we are distributing what goods were received (non-perishable items only). All agents who had ordered hampers will receive a number of boxes to share amongst customers who had ordered hampers. This means you will not receive the specific goods you ordered and no fresh or frozen goods will be included.
A third party logistics company called Home Delivery Network Limited (HDNL), have offered to deliver these goods to your agent free of charge and at their own expense. They are totally unrelated to Farepak and are doing this as a goodwill gesture.
Deliveries will start on Thursday 14 December 2006 and should be completed in time for Christmas.
This goodwill gesture is in addition to the distribution of vouchers, which is already underway.
Total Donations received. £6,800,000