Australians who say they have been left stranded overseas and broke after their travel agency collapsed have now been told the company was likely trading while insolvent.
melbourne-based agency Traveldream — which was registered as Australian Travel Deals Pty Ltd and sold discounted flights, cruises and international tour packages — collapsed in April and went into voluntary administration.
Now, an administrator’s report has found the company was “likely” trading while insolvent from 30 June 2024, more than nine months prior to entering voluntary administration.
Directors found guilty of allowing a company to trade while insolvent can face civil or criminal penalties and be banned from managing companies.
ABC News has spoken to dozens of travellers who booked once-in-a-lifetime overseas trips through the agency, many spending between $10,000 and $30,000, only to discover their bookings had been cancelled — in some cases mid-trip.
If the company went into liquidation, there would be some possibility their costs could be recovered, but it would be a lengthy process.
Debts to customers, who are considered “unsecured creditors,” would be some of the last — and least…
