Holiday cancellation (I think), booked to go with a friend

[Mumsfriend]

Hey,
Would really appreciate some help.
I agreed to go on holiday with a friend. We agreed that I would book and she would pay. It was a package deal via TUI.
I booked it and paid for it, and she transferred the money.
The deposit has been paid the rest due by 1st June, almost 500.00 still to be paid.
The friend has sent me a letter to say please let me have my money back Re holiday. If I don’t receive within 5 working days I will process through small claims court - letter came out of the blue.
I have tried to phone, text from different numbers (for if any issues), emailed and even knocked on her door (she was home), she didn’t answer the phone, texts or emails.
I don’t even know if she wants the holiday cancelled the letter states nothing but give me back my money.
The cancellation fee is 400.00, which has already been paid. She has paid me nearly 500.00 for the holiday and asking for it back. I haven’t cancelled and although she hasn’t confirmed cancel, it does sound like she no longer wants to go.
I have said to her in texts/emails/hand posted letter I will pay half of the cancellation fee of 200.00 and she should pay the Other 200.00 and will then give her back the rest, however she has ignored me.
What do I do?

@namechangedasscared OP booked but the friend paid. I'm assuming that since the balance due was also £500, friend paid deposit and OP would pay balance

Screw her. Send her the 100 back she would get if the cancellation fee was paid then find someone else to go halves with you on what is remaining plus the charge for changing a name. You both get a cheap holiday, she gets what she deserves.

@MolyHolyGuacamole have you not read even the OP updates? She specifically said later on (after being asked) that that had both paid for themselves - it was simply poor wording in the original post.

@namechangedasscared the latest update only says 'we were both paying equal shares' which still isn't clear 🤷‍♀️ if the deposit is £500 and the balance is £500, that's equal. So I til OP comes back and clarifies, I'm still going but the first post