Some 750,000 consumers who purchased extended warranties from PowerHouse, the former electrical goods giant which bought all of ScottishPower’s retail shops, could receive more than half their money back, it has been revealed.
However, the administrator told a creditors’ meeting of collapsed PowerPlan, a separate company set up to provide the warranties, that he could not say exactly where the cash would come from.
Nor was it clear what had happened to a multi-million pound fund, whose purpose had been to provide for the pay-backs under the warranty agreements, which promised 100 per cent cash-back to consumers if no claim was made on the warranty within five years.
PowerHouse suffered a devastating cash flow crisis in 2003 and its lending banks foreclosed.
From The Scotsman