THE liquidators of collapsed online travel agency Bestjet have obtained orders for “Public Examinations” of the business failure, with the Federal Court of Australia issuing summonses for oral examinations starting in Jul.
An update to creditors issued this week confirms that orders were obtained from the Court on 16 Apr, with Pilot Partners saying “the subjects of the examination summonses are persons we believe have taken part or been concerned in the examinable affairs of the company”.
Initially those served will be required to produce documents relating to examinable affairs of the company, followed by testimony from relevant parties.
Bestjet founder Rachel James, wife of disgraced former Air Australia chief Michael James, has been requested to supply all company books and records and information.
“Ms James has failed to comply and we have reported this non-compliance to ASIC,” the liquidators noted, adding that access had now been obtained to the company’s Xero accounting package which confirms that Michael James had logged in four times after the company was placed into administration (TD 18 Dec 2018), and as recently as 03 Jan 2019, despite his insistence he had no access to the account.
Pilot Partners has also commenced legal proceedings against Bestjet Singapore, which continues to be controlled by Rachel James, in respect to over $3 million in outstanding rebates payable from GDS firm Sabre.
“Bestjet Singapore will shortly be required to file a defence in the proceeding and thereafter the matter will be set down for a pre-trial conference in May 2019,” the report confirms.
The liquidators are also seeking payment of override incentives/rebates from airlines and consolidators owing to Bestjet Travel Pty Ltd and/or related party Wynyard Travel.
However “all these parties appear to have competing claims against the company that may exceed the amount outstanding to the company, which they may be entitled to a mutual offset”.
The liquidation is being funded through a Deed of Understanding with credit card intermediary IntegraPay, which has an unresolved claim over $3.6m in the Bestjet bank accounts.
Pilot Partners now estimates the collapse has impacted unsecured creditors owed over $25 million.
Source: traveldaily