The directors of Excite Holidays are set to take back control of most of the companies tied up with the wholesaler, following a vote by creditors yesterday.
The second creditors’ meeting in Sydney was held to provide an update on the progress of Excite’s voluntary administration and to vote on the future of its companies.
Options included whether to accept a deed of company arrangement (DOCA) proposed by Excite directors George Papaioannou and Nicholas Stavropoulos (pictured above), or send the wholesaler into liquidation.
Creditors voted to accept the proposed DOCA, which was also recommended as the best option by administrators Morgan Kelly, Phil Quinlan and Amanda Coneyworth in their report earlier this month.
Under the proposed DOCA, “priority employees” are expected to receive a dividend of 90 to 100 cents in the dollar, while unsecured creditors are estimated to receive between zero and two cents.
Secured creditors (in this case, the National Australia Bank) will be paid in full pending settlement of the sale of Global Travel Holdings’ premises, which is expected to occur on 30 April 2020.
Global Travel Holdings (GTH) is the holding company for Excite Holidays Australia (EHA), Global Travel Specialists (GTS) and Events NG (ENG).
On execution of the DOCA, control and management of EHA, GTS, ENG, and Travel Serv Co (a standalone entity) reverts to the Excite directors’ DOCA contribution $100,000 to be made immediately following settlement of the sale of GTH’s premises.
The vote comes shortly after Helloworld Travel announced it had agreed to acquire Excite’s proprietary online booking form, after administrators initially received 17 expressions of interest.