The creditors of DeadHappy have approved proposals put forward by the collapsed insurer’s administrator Evelyn Partners.
On 4 September administrators filled a notice of approval of administrator’s proposals with Companies House.
Administrator’s proposal
Last month, in a statement of administrator’s proposal, Evelyn Partners revealed that a sale for DeadHappy is expected to be completed this month after an offer was accepted from a firm operating in the life insurance sector.
However, it also revealed that more than £1.2m owed to creditors is unlikely to ever be paid back, with only employee holiday pay and HMRC likely to see some of the outstanding cash paid.
Of 152 potential purchasers contacted about buying DeadHappy, just two firms in the sector made indicative proposals and subsequently only one formal offer was submitted.
Neither the names of the interested parties or the value of the bid were released by the administrators, who simply confirmed the final two entities operated within the life insurance sector.
Providing an update on the likely financial outcome once a sale is completed, the administrators warned that only ordinary and secondary preferential creditors were likely to receive any of their money owed by DeadHappy.
£1m owed
In July, a statement of affairs filed with Companies House revealed DeadHappy’s unsecured debts were revealed to exceed £1m when it collapsed into administration in June, including more than £300,000 owed to Covea Life and £110,000 to Shepherds Friendly which underwrote its policies.
DeadHappy founder Andy Knott also submitted a claim of £144,166.58 against the business.
Preferential creditors consist of employee holiday pay worth an estimated £4,168.46. The secondary preferential creditor is listed as HMRC PAYE worth £199,773.45.
No figure was given about how much of this could be recouped for either the employees or HMRC.
All other unsecured creditors who are owed more than £1.2m are likely to receive nothing owed by DeadHappy.
DeadUnHappy
DeadHappy entered administration in June.
The controversial life insurer closed to new business in March after Shepherds Friendly ceased underwriting its policies.
As it closed to new business on its website the firm temporarily rebranded itself as DeadUnHappy.
Earlier last year it courted controversy by placing an ad featuring the infamous serial killer Dr Harold Shipman.
And in February 2023 Health & Protection reported that the Advertising Standards Authority (ASA) had told DeadHappy to avoid causing “serious or widespread” offence after banning two life insurance ads the insurer placed depicting notorious serial killer which attracted 115 complaints.
DeadHappy, with its logo of a smiling skull, differentiated itself from other life insurers by trying to make it easier for some people to get life insurance, it said.
