BusinessCompany NewsBDO takes former Farepak ‘parties’ to court

BDO takes former Farepak ‘parties’ to court

BDO is taking former so-called Farepak ‘parties’ to court to secure better compensation for creditors

Farepak liquidator,
BDO
Stoy Hayward
, says it has ‘issued proceedings against a number of parties in
an attempt to secure further monies for the benefit of creditors, including
customers’ of the collapsed savings club Farepak.

However, the liquidator has refused to reveal any further information, so as
not to prejudice the legal proceedings and jeopardise the success of the case
and it is unclear whether ‘the number of parties’ include former directors like
William Rollason, former chief executive, or Nick Gilodi-Johnson, former
managing director, The Independent reports.

About 150,000 former Farepak customers have so far been offered only 5p for
every pound they have lost through the club’s regular savings plan, but no
payments have been made by the liquidator because of the continued legal
squabbling.

The BDO statement warned the delay to payments was now in the hands of the
courts, and that ‘it will not be possible to pay a dividend before the end of
this year’.

Further reading:

Farepak investigation complete

Read
Independent story

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