Travel agents appoint liquidators

Press, 15 August 1981, Page 6

Travel agents appoint liquidators

Ry

LES BLOXHAM,

travel editor

Provisional deficiencies totalling $202,000 were reported to a meeting of creditors of Bolingbroke Travel, Ltd. of Christchurch, and its associated Auckland company, Compass Bolingbroke Travel, Ltd. yesterday.

Both companies have gone into voluntary liquidation. The meeting confirmed the appointment of Messrs A. G. Lewis and G. A. Hamilton, of Barr, Burgess, and Stewart, as liquidators. Thirty creditors, including representatives of nine airlines, attended. A provisional statement of affairs showed that the four biggest creditors are Pan American World Airways, Singapore Airlines, Air New Zealand, and a Christchurch advertising agency, Darby and Associates. Together they are owed a total of $132,000. The estimated total deficiency of Bolingbroke’s Christchurch agency is $95,095 and that of the Auckland company, $107,245. Mr G. Steven, a director who chaired the meeting, said later that $lOO,OOO of the Auckland debt was owed to the parent company. According to the report given creditors, the companies’ total assets have been estimated to produce $241,804. This figure includes $97,000 for the sale of their goodwill.

Mr Steven confirmed that the sale of the goodwill was conditional on official approval being granted for the transfer of the International Air Transport Association's franchise. Assuming that the sale proceeded, the net deficit might not exceed $50,000, he said. “If not, then the final net deficit will be closer to $150,000,” said Mr Steven. He blames the failure of the companies on a downturn in travel business and the declining value of the New Zealand dollar. “We are not the only agency in difficulty; we unfortunately just happened to be the one without the resources to carry us through to a better period," said Mr Steven.

The companies’ 90 clients, who had paid deposits totalling about $Bl,OOO. will be protected under the Travel Agents’ Association bond. “The public is largely protected by the bond,” said Mr Steven, “but I cannot say that they won’t lose any money. I believe there could be some areas, such as premiums on travel insurance, where the bond may not cover then.”

Viscount Bolingbroke, who was founder and chairman of directors of the companies, said after the meeting that he had been “quite overwhelmed" by the response of the creditors and their understanding of the situation.