Farepak customers to get 50 per cent refund
After years of battling, investors in collapsed Christmas saving firm Farepak learned they are to get half of their money back.
After years of battling, investors in collapsed Christmas saving firm Farepak learned they are to get half of their money back.
Farepak collapsed in 2006, leaving 114,000 people with total losses of £37m.
Liquidators BDO today said customers and agents would get around 32p in the pound, which includes a payment of £8m from Lloyds Banking Group.
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The bank, which owns HBOS, stumped up the cash after a court heard HBOS has played "hardball" with Farepak and was partly responsible for its collapse.
The remaining 17.5p will come from the Farepak Response Fund charity, which was set up by the Department for Trade and Industry in 2006.
The payout come after a case brought by the government's Insolvency Service against nine Farepak directors collapsed.
This meant the liquidators could wrap up their investigation, saying creditors would receive payment in August.
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