Isle of Man
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CHP 11/0097 - Foundations Program Plc (in liquidation) ("FPP")
CHP 11/0098 - FPA Limited (in liquidation) ("FPA")

Update 07 August 2014

Please read this update in conjunction with the 1 August update which sets out the background and defines terms.


Foundations Program plc - in liquidation ("FPP")
FPA Limited - in liquidation ("FPA")
Joint Liquidators and Joint Official Receivers ("JL&JORs")

On 31 July 2014 His Honour Deemster Doyle the First Deemster heard the Trust Application and delivered his judgment on Wednesday 6 August 2014 (the "Judgment").

The full Judgment is available, click here.

In summary, the Deemster determined that the Assigned Assets (namely assets assigned by Participants to FPA for the use of the program) are not held on Trust. The effect of this Judgment and consequential Order, is that when the Assigned Assets have been realised/liquidated by Barclays (to enable Barclays to discharge its security), the funds/assets subsequently released by Barclays will form part of the liquidation estate of FPA ("the Released Funds"). The Released Funds are not held on Trust by the JL&JORs of FPA and therefore Participants and Loan Note Holders will be entitled to claim (by filing a proof of debt if not already filed) in the liquidation of FPA. Once admitted those parties will thereafter receive a proportionate share of the assets of FPA. In other words, the Loan Note Holders and Participants will rank equally as unsecured creditors in FPA

Under the Rules of Court, the parties involved in the hearing have until 13 October 2014 to lodge an appeal and therefore until after that date there remains a possibility that this judgment is not the final decision regarding this particular issue.

In the meantime, the JL&JORs will now be taking a number of steps to deal not only with the realisation of assets (so far as they are able), but also to progress the Proof of Debt admission process, primarily in relation to Loan Note Holders. It appears that not all Loan Note Holders have submitted Proofs of Debt in the FPA liquidation and in any event the JL&JORs will be taking further steps to identify and verify Loan Note Holders claims against FPA (now that it is established this class has a valid claim in FPA.

FPP has also made a number of investments during its lifetime and JL&JORs continue to make efforts to realise some value from such FPP investments.

Participants and Loan Note Holders will be contacted by the JL&JORs in due course if further direct information or documentation is required from individuals. In the meantime interested parties are advised to check this website from time to time as continued updates are posted.

07 August 2014