Tempo Di­rec­tors blame AFTA

Travel Daily - - News -

THE Di­rec­tors of the col­lapsed Tempo Hol­i­days Pty Lim­ited have laid the blame for the com­pany’s demise squarely on the “gov­ern­ing bod­ies in Aus­tralia” in­clud­ing IATA, AFTA and ATAS.

Dur­ing yes­ter­day’s cred­i­tors’ meet­ing in Mel­bourne (see p1), ad­min­is­tra­tor Lau­rence Fitzger­ald read a state­ment from the Tempo Board of Di­rec­tors - pur­port­edly in­clud­ing Cox & Kings CEO Peter Kerkar and his brother-in-law Pa­trick Tully (see p2) - giv­ing their ex­pla­na­tion for Tempo’s col­lapse.

Fitzger­ald laid out the time­line, in­clud­ing the 26 Jun de­fault by Cox & Kings In­dia on about $31 mil­lion of debt pay­ments, plus more de­faults on 15 Jul.

On 03 Jul AFTA is­sued a “show cause” notice to the com­pany and qui­etly sus­pended its ATAS par­tic­i­pa­tion while Tempo re­sponded to requests for fur­ther in­for­ma­tion on the im­pli­ca­tions of the In­dian debt is­sues.

On 20 Aug Tempo Hol­i­days filed with AFTA a re­quest for the sus­pen­sion to be lifted, but two days later AFTA for­mally ter­mi­nated the com­pany’s ATAS ac­cred­i­ta­tion ( TD 22 Aug), on the ba­sis of Tempo not be­ing able to sat­isfy the re­quire­ments to prove that it was trad­ing sol­vently.

Ac­cord­ing to the state­ment read by Fitzger­ald, the Di­rec­tors put Tempo into ad­min­is­tra­tion “based on the fact that the gov­ern­ing bod­ies in Aus­tralia - IATA, ATAS and AFTA - had with­drawn the com­pany’s li­cence and ac­cred­i­ta­tion and re­jected the ap­peal for ex­ten­sion.

“While mer­chant bankers have been em­ployed to sell the com­pany in its en­tirety, in­clud­ing the Aus­tralian en­ti­ties, these dis­cus­sions were con­tin­u­ing at a pace tak­ing too long to guar­an­tee that any sales pro­ceeds would ac­tu­ally ar­rive in time to en­able the com­pany to con­tinue to trade,” they claimed.

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