Industry Taken By Surprise As Former itravel2000 Files Notice To Creditors
Industry suppliers were left scrambling for answers yesterday after the news that the registered company 8635919 Canada Inc. (formerly known as itravel2000) had issued a proposal to file for bankruptcy protection with the Office of the Superintendent of Bankruptcy Canada.
One supplier told Open Jaw that the news raised questions about accepting bookings from itravel2000, simply because they had not been advised of the situation.
But Richard Smart, President & CEO of the Travel Industry Council of Ontario (TICO), says the newly registered iTravel2000.com is operating under the legal name 9831185 Canada Inc. and is registered with the industry regulator.
Smart has confirmed to Open Jaw that TICO is satisfied the registrant met all conditions for registration. “The prior entity that operated iTravel2000 terminated its registration with TICO and its shareholders can therefore proceed with any corporate filing deemed necessary.”
As Smart explains: “TICO does not get involved with non-registrants undergoing corporate restructurings.”
In a Notice of Intent filed with the Ontario Superior Court of Justice, the company identifies creditors with claims of $250 or more. It’s a short list, but the total comes to over $21 million, with Aldenham Canada Acquisition Corp. and Elleway Properties limited each owed over $10 million. Over $220,000 is listed with ‘employee’ as the creditor.
In response to an inquiry from Open Jaw, TravelBrands co-owner Frank DeMarinis wrote: “I confirm that Red Label Holdings Inc has completed the purchase of some of the assets of itravel2000, Including the names itravel2000.com and itravel2000.”
That purchase is still pending regulatory approval.
The bottom-line appears to be that Red Label will be able to use the itravel2000 brand and technology, without assuming any of the company’s debt.