Tucan payouts up to 20c

CREDITORS of the collapsed Tucan Travel will receive up to 20c in the dollar, according to the formal Creditors Report from administrator Andrew Barnden of Rodgers Reidy which was circulated yesterday.

The report confirmed the outcome of Barnden’s initial investigations into the closure of the company, which ceased trading last month alongside its UK parent (TD 03 Feb).

Citing ongoing uncertainty around international travel and increased requests for refunds from customers, Tucan was not in a position to provide a full refund to all clients, while Tucan UK was “unlikely to meet the annual solvency reporting requirement in respect to travel companies which is imposed by the UK Government,” Barnden said.

The report confirms unsecured creditor claims of $821,000 from the Australian entity, with up to $164,000 available for distribution based on an estimated recovery from a UK inter-company loan account.

If no funds are forthcoming from Tucan UK, the payout will be more like 10c in the dollar.

Barnden provided a list of creditors, which includes a combination of consumers, trade suppliers and travel agents including Tour Radar Australia Pty Ltd which is owed $66,971.

Helloworld, Flight Centre,

TravelManagers, MTA, House of Travel and Travel Partners agencies are also owed money, while there is also about $37,000 owed to four staff.

Barnden, who found that Tucan may have been insolvent from as early as 30 Jun 2020, has recommended that it is in the interest of creditors that the company be wound up.

That proposal will be voted on at a further meeting of creditors which has been convened for 11am (AEDT) next Tue 09 Mar.