BusinessBusiness RecoveryAdministrators retrieve £4m for Farepak creditors

Administrators retrieve £4m for Farepak creditors

Administrators negotiate £4m payment for creditors at Farepak, three years after the company's collapse

BDO administrators managed to retrieve £4m from the directors of collapsed
Christmas savings club Farepak this week.

Following long negotiations between the administrators and former directors
of Farepak, the directors will make payments from their own pockets the
Sunday
Times
reported.

“The action issued by the joint liquidators of Farepak Food and Gifts Limited
against the directors of Farepak has been settled with no admission of liability
by the directors. An amount of £4m (inclusive of costs) has been received by the
joint liquidators,” said a spokesman at BDO.

The payout equates to 15p in the Pound, up from its orginal estimates of
around 5p.

Martha Thompson and Dermot Power, both partners at BDO, were appointed
administrators to Farepak on 4 October 2007. Thompson and Shagun Dubey were
previously appointed administrators to Farepak assets on 13 October 2006.

Farepak collapsed owing more than £40m after the parent company European Home
Retail went into administration in 2006.

Further reading:

Farepak
cheques sent out to customers

Farepak
administrators attacked by MP for ’raking in’ customer cash

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