NEWS RELEASE

Administrators appointed to All In One Finance Ltd

On Tuesday 12 May 2015, Daniel Smith and Joe McLean, both Partners at Grant Thornton UK LLP, were appointed as administrators to All In One Finance Ltd (AIOF), the finance arm of the Carcraft group.

This follows the appointments over CC Automotive Group, UK Car Group Ltd, Pennine Metals A Ltd and Pennine Metals C Ltd (which traded as the Carcraft Group).

AIOF is authorised and regulated by the Financial Conduct Authority.

AIOF provided certain loans to Carcraft customers to finance the purchase of the Carcraft Drive Happy Package, as well as to finance vehicle purchases.

Please note that AIOF is not in a position to stand in the shoes of Carcraft in respect of the delivery of the Drive Happy Packages.

Prior to the appointment of the administrators, some of the AIOF loans to customers have been sold by AIOF to certain third party companies (including Aktiv/PRA). Any impacted customers will have previously been, or will shortly be, notified of the sale of their account. If you are one of these customers, you should expect to hear from these parties in due course.

Customers who have loans with AIOF and are affected by the administration appointment will be shortly contacted directly, however we would encourage all customers to continue to maintain their direct debit payments whilst we work through this transition period to ensure the customers suffer no adverse consequences in the interim (such as incorrect credit reference agency notifications).

Please direct any queries in relation to AIOF, that do not relate to the ongoing monthly payments (which will be clarified as soon as possible and a further communication issued directly to the customers), to the following email address:

allinonefinance@uk.gt.com

Administrators appointed to CC Automotive Group Limited, UK Car Group Limited and Pennine Metals A Limited t/a The Carcraft Group

On Thursday 30 April 2015, Daniel Smith and Joe McLean, both Partners at Grant Thornton UK LLP, were appointed as administrators to the above Companies trading as Carcraft, the multi-site used car supermarket. This follows an appointment as administrators to Pennine Metals C Limited on 16 April 2015.

Headquartered in Rochdale, Carcraft is the UK's seventh largest second hand dealership chain with an annual turnover of £120m, 500 employees across 10 sites nationwide. The Group sells over 12,000 used vehicles per annum at an average price of c£9,000 per vehicle.

The Group operates in a competitive market and has suffered from poor market reputation, lack of investment, a high cost base, expensive loan note financing and an insolvent balance sheet all of which have hindered investment. The Group also has legacy PPI claims.

The Group is heavily loss making recording losses of c£8m per annum for a number of years.

A sales process has been on-going since February 2015 which was ultimately unsuccessful.

Carcraft will cease trading and all employees have been informed and have been made redundant. All employees were paid on 30 April 2015 for the month of April.

Due to the nature of the situation, Carcraft customers with Drive Happy Plans (DHP), a warranty, MOT, servicing and roadside assistance product will no longer be covered and all elements of the policy will not be fulfilled by Carcraft.

Any queries should be directed to:

carcraft@uk.gt.com

The administrators of Carcraft have received an extremely high volume of queries. The administrators are responding to each email as soon as possible, although encourage all customers to continue to monitor the website for updates on the position

A customer helpline has been set up at Head Office:

0800 923 9495

Customers should press option 6 when calling.

CUSTOMER FAQS REGARDING AIOF

What is the position regarding All In One Finance Ltd?

As noted above, on Tuesday 12 May 2015, Daniel Smith and Joe McLean, both Partners at Grant Thornton UK LLP, were appointed as administrators to All In One Finance Ltd.

Customers who have loans with AIOF and are affected by the administration appointment will be shortly contacted directly, however we would encourage all customers to continue to maintain their direct debit payments whilst we work through this transition period to ensure the customers suffer no adverse consequences in the interim (such as incorrect credit reference agency notifications).

DHP RELATED FAQS

I have a DHP, is it still being provided?

Due to the administration of Carcraft, the DHP (a warranty, MOT, servicing and roadside assistance product) will no longer be covered and no elements of the policy will be fulfilled by Carcraft.

The costs a customer with a DHP incurs in relation to the products previously covered under the DHP will be an unsecured claim against Carcraft. It is highly unlikely that you will receive a substantial proportion of this claim from the Carcraft administration.

I have a DHP, can I cancel my product and get a refund?

Unfortunately, due to the administration of Carcraft, it is not in a position to refund customers.

I am still in my cooling off period for the DHP, can I cancel and obtain a refund?

Unfortunately, due to the administration of Carcraft, it is not in a position to refund customers.

Was the DHP insurance backed?

No.

Where do I get my car serviced?

Due to the administration, Carcraft is not in a position to service your car. You will have to make alternative arrangements.

Where do I get my car MOT'd?

Carcraft is not in a position to undertake an MOT on your car. You will have to make alternative arrangements.

If I get a service or MOT done at a local garage, will I be reimbursed?

Due to the administration of Carcraft, it is not able to reimburse customers for any work undertaken by other garages.

If I break down, who do I call?

Due to the administration of Carcraft, your road side assistance will no longer be honoured.

Can I submit a claim for costs I incur to have MOT, services and warranty work done at an alternative garage, or if I obtain road side assistance elsewhere?

The costs you incur in relation to the products previously covered under the DHP will be an unsecured claim against Carcraft. It is highly unlikely that you will receive a substantial proportion of this claim from the Carcraft administration.

Can I bring my car back?

The administrators are not in a position to refund customers who have paid for a car in full.

I have a finance loan to pay for my DHP, can I cease payments?

Carcraft did not provide loans and therefore if you are paying a monthly direct debit in respect of your car/DHP, this will either be to AIOF or an external finance provider.

The wording of the direct debit payment on your bank statement may state the finance provider for your loan.

For the avoidance of doubt the DHP was not a monthly subscription service.

The administrators of Carcraft are not in a position to comment in respect of loans as they were not provided by Carcraft. Please contact your finance provider.

If you have a loan with AIOF, the administrators of AIOF have contacted you directly regarding your loan. If you have not received a communication from AIOF please email allinonefinance@uk.gt.com

I am waiting to be reimbursed for repairs already carried out at another garage; will I receive this?

Due to the administration of Carcraft, reimbursements are not possible.

Who will pay for repairs I have paid for at another garage?

Assuming the terms of your DHP allowed such repairs to be reimbursed, your costs in relation to repairs at another garage will be an unsecured claim against Carcraft. It is highly unlikely that you will receive a substantial proportion of this claim from the Carcraft administration.

My car is currently in a Carcraft garage, can I collect my car?

Yes. Please contact the Carcraft site to arrange collection of your car.

Are the administrators doing anything to obtain an alternative DHP for us?

The administrators of Carcraft have been unable to source an alternative to the DHP.

The administrators of AIOF have been unable to source an alternative to the DHP for its customers. As such the administrators of AIOF have contacted its customers directly to discuss their loans.

CUSTOMER FAQS REGARDING CAR PURCHASES

Can I bring my car back for a refund?

The administrators are not in a position to accept a return of a car or make refunds to customers.

If a customer has paid a deposit on a credit card they should contact your credit card provider.

If a customer has paid a deposit in cash, the administrators are unable to provide a refund.

If you need evidence of the administrators' appointment please email either carcraft@uk.gt.com or allinonefinance@uk.gt.com

I have paid for my car in cash, can I collect my car?

Please contact the administrators with details of your vehicle registration number and evidence of payment, to discuss your position.

I have paid for my car on finance, can I collect my car?

Please contact the administrators with details of your vehicle registration number and your finance documents, to discuss your position. Payment must have been received from your finance company to enable collection.

I part exchanged a car which had outstanding finance and Carcraft agreed to settle the outstanding finance. What will happen?

The administrators are investigating the position regarding part exchanged cars with outstanding finance.

The administrators will contact the customers to discuss their options as soon as possible.

I referred a friend for a Carcraft sale and was due a commission. Will I get paid?

Unfortunately, due to the administration any unpaid refer a friend commissions will be an unsecured claim against the Company. It is highly unlikely that you will receive a substantial proportion of this claim from the Carcraft administration.

CONTACT DETAILS FOR THE ADMINISTRATORS

Please direct queries to:

carcraft@uk.gt.com

Please include in the subject of your email the Vehicle Registration Number and relevant Carcraft site location

Please also continue to monitor the website for updates.

www.carcraft.co.uk

The Administrators act as agent of the companies and without personal liability

FORMER CARCRAFT EMPLOYEE NOTICE FROM BEN, AN AUTOMOTIVE INDUSTRY CHARITY

BEN encourages former Carcraft employees to utilise support services

Automotive industry charity is proactively extending its help and support to those affected.

As the automotive industry charity, BEN exists to support those in our industry who are in need and we want to make sure that our colleagues who lost their jobs following Carcraftís recent closure know we are on hand to support them.

As many of those affected received the news on very short notice we are sure there will be a number of you who are still shocked and experiencing uncertainty. Situations like these can often lead to stress and worry so itís important you know that BEN can support you. We want you to know that we can provide confidential and independent help throughout this unsettling and potentially difficult time.

BEN can offer:

Professional Listening/Advice Services

Signposting

Short term financial assistance

Often, pre-existing personal or family challenges can be further affected by job loss, so please know that you can turn to us no matter what the issue is.

Our support is available to you now right now and we want to remind you that our services are free and completely confidential. We ask that you share this information amongst the group and encourage anyone who is struggling to get in touch with BEN as soon as possible. Not only do we want to help safeguard those who find themselves without employment but also provide practical help to get them through this overwhelming and difficult time. You donít need to cope alone, one phone call to BENís helpline will provide this information and we will help you every step of the way.

To contact BENís professional Support Services team call 01344 876770, text 07781 472622, email careservices@ben.org.uk, visit ben.org.uk/gethelp