Wholesalers

The Excite Holidays news that agents didn’t want to receive

Huntley Mitchell

Huntley Mitchell

The first creditors meeting about the collapse of Excite Holidays has revealed the wholesaler’s debt is estimated to be up to $35.1 million.

Worse still, administrator Morgan Kelly from KPMG has warned it is highly unlikely that any unsecured creditors will receive any return.

Speaking at yesterday’s meeting in Sydney, Kelly detailed how much of the $35.1 million was owed to each group of creditors.

In terms of unsecured creditors, the administrator’s estimate is that agents (there are approximately 6,000 in Australia that actively work with Excite) and travel suppliers are owed between $7 million and $16 million, international companies within the Excite group are owed $6.5 million, employees are owed $1 million, and general suppliers are owed $800,000.

That leaves 10.8 million owed to secured creditors – in this case, the National Australia Bank for Excite’s Sydney office.

The failed wholesaler’s executive directors, Nicholas Stavropoulos and George Papaioannou, had prepared a statement expressing “deep regret as to the impact to agents and passenger arrangements over the past few weeks”, which was read out at the meeting.

According to the statement, Excite’s performance began to go downhill in the 2019 financial year and continued in FY20 “as a result of the market’s increased caution in dealing with non-ATAS channels following several high-profile collapses in the travel industry”.

Stavropoulos and Papaioannou claim the wholesaler was looking to re-join the ATAS scheme by searching for new ways to strengthen its balance sheet prior to its collapse, but was hindered by ongoing development expenses.

The administrator also shone a light on Excite’s confusing company structure, which is detailed in the diagrams below:

So, where to from here?

A detailed report outlining among other things the potential outcome for creditors of the companies is set to be sent to creditors around 6 February, and a second creditors meeting will be held on or before 17 February.

Image: iStock/alexskopje



SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Aviation

Qantas proposes scrapping bonuses if it is “harmed”

Qantas has copped some bad press lately, but the silver lining is it’s a great excuse for Alan Joyce to get a nice makeover!

Share

CommentComments

Aviation

Boeing 737 MAX mid-air emergencies revealed in new investigation

Surprisingly the investigation came from the ABC and not from Air Crash Investigation, which kind of puts the show to shame a bit.

Share

CommentComments

Travel Agents

Western travel agents banned from booking Hajj pilgrimage

Those looking to complete Hajj will have to enter the Hajj lottery, which you are still astronomically more likely to win than the actual lottery.

Share

CommentComments

Wholesalers

Virtuoso uncovers key differences in how each generation travels

Meanwhile, Travel Weekly staff are conducting our own research to tap into the zoomer market by teaching the office dog TikTok dances. It’s not going well.

Share

CommentComments

Cruise

Royal Caribbean Group completes its comeback with all ships back at sea

To honour the milestone, all 63 ships in the group’s fleet sounded their horns at once, which most likely scared the sh*t out of nearby fishing boats and unsuspecting wales across the world.

Share

CommentComments

Travel Agents

Virgin teams up with Flight Centre for money-can’t-buy workshop

It’s the second time a Flight Centre partnership has come up this week and it’s only Tuesday! Skroo must be feeling extra convivial this week.

Share

CommentComments

Aviation

“It’s more like a bribe”: Unions slam Qantas’ $5,000 ‘thank you’ payment

Speaking of bribes, if anyone would like to bribe us with an all-expenses-paid trip to Japan we promise to give you a good review on TripAdvisor.

Share

CommentComments

Destinations

Solomon Islands to reduce mandatory quarantine

Good news for those looking to travel across the Pacific Islands! Not so good news for those who enjoy being confined to a hotel room for days on end.

Share

CommentComments

Hotels

Oakwood solidifies Aussie presence with full opening of Melbourne luxury property

Looking to treat yourself? Don’t get a chocolate at the shops, book yourself a stay at the new Oakwood property in Melbourne (or do both)!

Share

CommentComments

Aviation

Flight Centre signs landmark agreement with Rex as pilots prepare for industrial action

While seemingly struggling to win popularity among its pilots, the regional carrier has turned to its agency partners for reassurance.

Share

CommentComments

Cruise

Princess reveals The Real Love Boat crew, celebrates ‘Top Gun Agents’

Say a prayer for the poor souls tasked with wrangling a ship full of reality dating contestants hell-bent on getting frisky at sea.

Share

CommentComments

Destinations

How your clients can skip the rebound chaos with South America

Got clients keen to travel but hoping to avoid inflated prices and hoards of European Summer revellers? We’ve got the answer for you.

Share

CommentComments