Excite Directors take control
GEORGE Papaioannou and Nicholas Stavropoulos, the Directors of the collapsed Excite Holidays, were yesterday handed back control of four of the five companies involved in the failure - while the fifth one was removed from the Administration because according to KPMG, it was never insolvent (TD breaking news).
The outcome of the Second Creditors Meeting saw a Deed of Company Arrangement, proposed by the directors, accepted by creditors present at the meeting, who also voted to allow the parent company, Global Travel Holdings Pty Limited (GTH), to be released from the process.
GTH is the owner of the 71 York St Sydney property bought by Excite Holidays in 2016, which is now in the process of being sold.
The Administrators say the asyet undisclosed contract price is at market value, with settlement due on 30 Apr and the proceeds expected to discharge all secured debts owing to NAB.
The now agreed Deed of Company Arrangement will see $100,000 in surplus funds from this sale contributed to the Administration by the Directors, who in return take control and management of Excite Holidays (Australia), Events NG, Travel Serv Co and Global Travel Specialists, which ceased trading a month ago with debts of over $30 million.
The Deed of Company Arrangement will be overseen by the Administrators from KPMG.
THE KPMG Administrators of Excite Holidays yesterday noted significant errors in the figures presented as part of the report into the affairs of the companies involved in the failure.
The original summary of the consolidated Profit & Loss statement indicated that Excite’s sales had plummeted from $148 million during the year to 30 Jun 2019, down to just $16.7 million for the six months to 31 Dec 2019.
However Administrator Amanda Coneyworth issued updated figures during yesterday’s Second Creditors Meeting, saying the original $16.7 million figure quoted was actually just Excite’s sales for Dec 2019, rather than for the full six month period.
The corrected amount was $65 million in sales for the half year, conducted at effectively zero margin meaning that after hefty expenses Excite lost $12.5 million in its final six months of operation.