Dead Happy's insurance business was turned down by 150 companies in March this year and only two companies made reasonable offers, the administrator's document has revealed.
According to a 45-page document, filed to Companies House, administrators Evelyn Partners had carried out an "accelerated marketing process" to help keep Dead Happy in business.
According to the document: "None of the directors had an interest in acquiring the business." But Dead Happy's directors worked with Evelyn Partners to help identify an "appropriately wide pool" of potential purchasers.
Evelyn Partners then sent letters and non-disclosure agreements to 80 firms registered with the Financial Conduct Authority to carry out insurance business.
They also sent this to 70 companies focusing on distressed assets and merger and acquisition targets.
Two companies out of the 152 stepped forward with offers but only one was formally submitted. In March 2024, this offer from a life insurance company was accepted and "the work is now progressing to conclude the agreed sale to the purchaser."
The purchaser is as yet unknown; its underwriters are Shepherds and Covea. These insurers have invoked 'step in', which means they have transferred all customer policies from Dead Happy to themselves.
The completion of the sale will complete the realisation of the most significant assets of the company.
Creditors
The failed life insurer, which went into administration this year, was known for its controversial and eye-catching adverts, including the use of serial killer Harold Shipman.
But in December 2023, Pac Re served notice of the termination of the insurance agreement on Shepherds' Friendly, the underwriters for Dead Happy. This meant that Dead Happy was unable to continue to write life policies from March 2024.
The process of realising the assets and paying creditors has been under way over the past few months, as previously reported. There is approximately £120,000 cash in the bank.
All remaining staff were redundant as of July this year.
According to the administrators' document, there should be enough cash in the kitty post-sale to "enable a distribution to the ordinary preferential creditors [such as employees] of the company, and likely that a dividend will also be payable to the secondary preferential creditors".
The fees for Evelyn Partners stand at just over £98,500 according to the document.
