Farepak Joint Liquidators announce dividend payment

The Joint Liquidators of Farepak have today announced that they will be making dividend payments to Farepak’s creditors, including customers and agents, at the end of next month.  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 at the end of August. 

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 £.

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 within two weeks.  The Claims Management Team is not able to deal with changes of address over the telephone or via email for security reasons. 

- Ends –

Note to editors

BDO LLP, a UK limited liability partnership registered in England and Wales under number OC305127, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. A list of members' names is open to inspection at our registered office, 55 Baker Street, London W1U 7EU.  BDO LLP is authorised and regulated by the Financial Services Authority to conduct investment business.   The combined fee income of all the BDO Member Firms, including the members of their exclusive alliances, was €4.06 billion in 2011. The global network provides business advisory services in 135 countries, with almost 48,800 people working out of 1,118 offices, worldwide.   BDO is the brand name for the BDO International network and for each of the BDO Member Firms.   BDO Northern Ireland, a partnership formed in and under the laws of Northern Ireland, is licensed to operate within the international BDO network of independent member firms.