Collapsed travel firm has no money for creditors
THERE is ‘no realistic prospect’ of the creditors of Channel Island Executive Travel Ltd getting any of their money back, the company’s liquidators have said.
The company had an estimated deficit of just over £800,000 when it was placed in voluntary liquidation last month.
News of the liquidation emerged in January, when owner Fred Eulenkamp said that he had decided to retire due to ill health and that voluntary liquidation was the ‘cleanest’ way of doing it.
The company was the trading name of Travel Solutions, and it booked hotels and other services and the suppliers would invoice the third party for payment.
The agency handled travel arrangements for the States until the end of last November, when its contract ended and providers were left with payments outstanding.
In a letter to creditors, the joint liquidators at Grant Thornton said that they were appointed after the company passed a special resolution to go into voluntary liquidation on 12 February.
‘On the basis of information presently provided to the joint liquidators by the directors, the company is insolvent,’ said the letter.
‘The joint liquidators consider that the value of the company’s assets will be insufficient to meet the costs and expenses of the winding up.
‘The joint liquidators regret to report that there is no realistic prospect of any dividend return to any class of creditor out of the proceeds of the liquidation.’
Among the creditors are Income Tax and Social Security, which are owed about £16,000.
The largest creditors are the Independent Association of Travel Agents, which is owed £261,430.07, and American Express, which is owed £105,003.83.
At the time news broke of the liquidation, Mr Eulenkamp said that debts would take a few weeks to be paid but could guarantee that would be in full.
The liquidators were unable to provide any further information at this stage.
Efforts to contact Mr Eulenkamp were unsuccessful.
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