Tempo collapse reverberates

The most recent report from the administrators of the collapsed Tempo Holidays Pty Limited confirms expectations that unsecured creditors are unlikely to see anything from the company’s administration. The document details the steady decline of Tempo Holidays and Bentours over the three months prior to their collapse, as cash flow from customer payments dried up during a traditionally slow time of the year and was unable to be topped up from the global treasury operations of its parent firm, Cox & Kings because of a “standstill agreement” with its bankers. Interestingly, administrator Laurence Fitzgerald suggests the company had been trading while insolvent for some months, with the situation a stark contrast to repeated assurances from local management that Tempo Holidays and Bentours were unaffected by the financial issues at their India-based parent company.

As this issue of travelbulletin goes to print there are moves afoot to sell parts of the business, with Fitzgerald confirming exclusive due diligence with one preferred bidder after receiving 21 expressions of interest. Several players are also moving swiftly to fill the gap left by Bentours’ demise, including 50 Degrees North which has launched a new NORD Journeys brand, and Adventure World

Travel which has announced a new partnership with key

supplier Hurtigruten Cruises as well as the development of a dedicated Scandinavia program.