Bestjet liquidation payout

THE liquidators of Bestjet Travel Pty Limited, which spectacularly imploded almost two years ago (TD 19 Dec 2018), believe there will now be sufficient funds to enable a partial dividend to unsecured creditors, while staff entitlements will be paid in full.

Pilot Partners yesterday detailed the current state of play for their investigations into the collapse, which took place just six weeks after the business was purchased from Rachel James by McVicker International (TD 06 Nov 2018).

The liquidators have since conducted public examinations of Bestjet’s Director, Robert McVicker Jr, as well as former Director Rachel James, her husband Michael James, and key staff of Bestjet and sister firm Wynyard Travel, including David Lanning (TD 25 Jul 2019).

Yesterday’s update confirmed that a $3.6 million claim by credit card processor Integrapay Pty Ltd had been found to be “without merit,” with Integrapay having since withdrawn the claim and also paid the liquidators further funds received after 17 Dec 2018 plus a contribution to legal fees.

“In our view, this has been an excellent outcome for creditors,” said Pilot Partners’ Nigel Markey.

“The liquidators have been able to quickly obtain access to significant funds for the benefit of creditors at minimal cost despite a serious challenge,” he said.

Legal proceedings against sister company Bestjet Singapore to recover Sabre GDS rebates worth about $3.2 million have also seen formal mediation conducted this week by former Singapore Supreme Court Judge Andrew Ang.

“The mediation was very productive and we remain in advanced settlement discussions with Bestjet Singapore,” Markey said, with a further update to be forthcoming in due course.