Tuesday, 3 November 2009
ADMINISTRATORS TAKE HALF FAREPAK PAY OUT
Administrators have taken half the money recovered from the collapsed Farepak hamper firm, while customers continue to wait for compensation.
Media reports show that of the £6 million recovered so far, £3 million has paid the bills of accountants and lawyers.
Meanwhile customers are expected to receive only 5p for every pound lost and a report into the collapse has still to be published.
Banff & Buchan MP Alex Salmond, who took up the cases of many constituents who lost money in the collapse of Farepak said:
“It is the final insult that, after three years, the Farepak victims have been left with pennies while the administrators have made millions.
“Farepak victims have already seen the bankers that shut them down walk away with their bonuses and benefits packages – now they are seeing the organisation supposed to recover the money taking more than it is giving.
“I hope this situation can be resolved and Farepak victims will finally receive a decent compensation package.
“The UK Government needs to take a serious look at the workings of the insolvency industry which is raking in a fortune at the expense of creditors.”