Notice to Participants
Mr Simon Cross is a Participant in the Foundations Program. His adviser is Mr Simon
Cook. He has expressed an interest in contacting other Participants but the provision
of contact details without consent is not acceptable. However, Mr Cross may be
contacted
here and Mr Cook
here if any Participant wishes to make him or herself known.
Consultation Update
The consultation commenced on 28 May 2013 for those contactable by email. A number
of physical letters were despatched shortly therefter. In total 160 Participants
are eligible to make their views known. To date 61 (a little over 38%) have done
so. This is a little surprising and disappointing. The consultation will remain
open until Monday 8 July 2013 and the results will be published on this site.
Background
On 23 November 2011, the Isle of Man Financial Supervision Commission petitioned
the Isle of Man High Court for the winding-up of Foundations Program plc ("FPP")
and FPA Limited ("FPA"), a subsidiary company of FPP. Michael Fayle of
KPMG LLC and Paul Shimmin of Shimmin Wilson & Co were appointed Joint Official
Receivers ("JOR and JPL") and Joint Provisional Liquidators.
Arising from the provisional appointments, first meetings of contributories and
creditors were convened for 19 January 2012. More time than usual was allowed
to convene these initial meetings to allow formal notices a reasonable opportunity
reach Participants, many of whom are overseas. The meetings were duly held
- one had to be adjourned for lack of a quorum but was subsequently reconvneed. A Statements
of Affairs, which had not been made available by the Directors in time to send with
the notices, was presented at each meetings. Two key resolutions
were addressed:
1 whether or not to apply to the Court to appoint persons other than the JOR and
JPLs as liquidators ("JLs").
2 whether or not to appoint Committees of Inspection.
Each meeting declined the opportunity to propose alternative liquidators under resolution
1 and the each expressed the view that a Committee of Inspection for each company
should be appointed. However, insufficient nominations for places on either
Committee of Inspection were received and therefore committees have not been created
at this stage.
Reports of the first meetings of contributories and creditors were filed with the
Court on 24 February 2012 and on 2 March 2012 the Court confirmed the appointment
of the JOR and JPLs.
The liquidations have considerable complexities, including sensitive matters involving
legal issues in several jurisdictions. These are not matters that the JLs anticipate
can be resolved quickly. Aside from the complexities of the liquidations themselves
it is apparent that the contact details for many Participants were not up to date.
Contact has been made with a number of these, but a considerable number have not
yet come to light. Making initial contact is a priority.
Future areas of this web site will be restricted to those with a valid interest
in the liquidations of FPP and FPA. Each liquidation is legally separate from the
other, and the creditors of one are not necessarily creditors of the other. Accordingly,
the JLs are taking advice to establish whether open reporting of the activities of
each liquidation may be made to both sets of creditors.
Subject to the outcome, the JLs propose to publish reports, updates and other relevant
documents on the restricted area of the web-site and, in due course we will make
usernames and passwords available on request.
Consequently, at this point no further documents are available, other than those
provided before the meetings.
There are four main areas of action that the JLs are able to comment on in general
terms.
Asset realisations
The main asset is a minority holding in a student accommodation fund. This is not
a readily disposable asset and whilst steps are taken to maximise the return from
this asset. Further information cannot be disclosed at this stage due to the risk
of prejudicing the position.
Participants
The address and contact records of a very large number of Participants are incorrect
and steps continue to track investors. Further investigations suggest that the periodic
valuations of the policies appear to be inaccurate and, indeed, the underlying recording
of the assets held within the policies appear to be inadequate. This may mean that
the allocation of points to Participants may be defective/inaccurate.
A comprehensive investigation is underway but will require significant detailed
information from the life companies. Discussions for the provision of this information
are taking place.
Loan Note Holders
The JLs are currently investigating the status of the possible Loan Note Holders
in FPA. This matter has significant legal complexities. Further information cannot
be disclosed at this time due to the risk of prejudicing current and/or future proceedings.
General investigations
The JLs have a general duty to investigate the circumstances of the company. Alongside
the general duty, a number of Participants have raised questions that may have an
impact on the liquidations. These matters will form part of the investigations the
JLs are undertaking.
The JLs originally indicated that the liquidations were highly unlikely to be completed
in less than a year and nothing has come to light to change that assessment. Participants
and creditors are advised to monitor this site for future updates.
Foundations Program plc - notice |
click here
|
Update letter January 2012 |
click here
|
Participants - explanatory note |
click here
|
Loan note holders - explanatory note |
click here
|
Notice to Participants |
Mr John Parkinson is a Participant in the Foundations Program. He has expressed
an interest in contacting other Participants but the provision of contact
details without consent is not acceptable. However, Mr Parkinson may
be contacted
here if any Participant wishes to make him or herself known. |