FPA Limited - in liquidation

Foundations Program plc - in liquidation

Updates


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.