Nothing for STA creditors

THE Administrators of the collapsed STA Travel Australia, Deloitte (TD 20 Aug 2020) have confirmed there is likely to be no funds available for distribution to creditors, with more than 37,000 consumers owed almost $50m, according to the recently released Liquidators Statutory Report.

The company, which ceased trading on 21 Aug, had no major assets, having operated the STA brand under a licence from its Swiss parent which also provided all IT infrastructure.

Although the overall potential customer claims total $48 million, Deloitte said that figure was likely to “materially decrease” because clients may have arranged a refund or credit with the relevant air and land supplier directly, and as such are not a creditors of STA.

In addition, those who complete a successful credit card chargeback are also no longer creditors.

Other major liabilities of the failed business include a $14 million fine levied by the Australian Competition and Consumer Commission over STA’s misleading MultiFLEX product (TD 24 Apr 2020), but “the ACCC has advised that it does not intend to claim in the liquidation of STA Travel,” the report confirms.

Deloitte noted that as it is currently in control of the company it is “entitled and obligated to take all reasonable steps to recover debts due and payable,” including refunds for cancelled travel booked by STA on behalf of its customers.

So far only $1.2 million has been recovered, with the firm currently reconciling the payments.

Any customer distributions will be advised in Q1 2021 subject to a court process, with Deloitte noting that it had been a “complex and difficult reconciliation process, involving ...a substantial amount of work and time”.