A sports travel company has gone bust owing more than $3m, leaving young cricketers and their coaches without money for overseas trips.
Calypso Destinations was placed into administration in April after the company collapsed under the weight of debts accumulated during Covid lockdowns.
Westburn Advisory director Shumit Banerjee was formally appointed liquidator the following month and discovered the company had just $616 in the bank.
The company helped organize overseas trips and sports tours, including a basketball tour of the US and cricket trips to India, the Caribbean and around Australia.
Calypso Destinations director Kevin Tyler told Banerjee that business began to falter after international borders were closed during Covid lockdowns.
High interest rates, short-term borrowing and a loan under a federal government pandemic relief plan had resulted in an overwhelming amount of debt.
Mr Banerjee’s report to the Australian Securities and Investments Commission (ASIC) found the company owed more than $3.1 million to unsecured creditors.
Among them is Mr Tyler, who is owed $924,000 in “loans to the company”.
A sports travel company has collapsed and owes more than $3 million, leaving young cricketers and coaches without money for overseas trips (pictured, passengers at Sydney airport)
The report also found that the company had long been struggling to meet debt payment deadlines, often on the due date or a day or two before.
In February it failed to raise enough investment to maintain its financial balance and went into administration.
Mr Banerjee said creditors, including families and coaches of the young cricketers, were unlikely to get their money back.
However, their investigation also found that the company had paid $674,400 in a series of transactions in the period before its collapse.
They included a $277,000 payment to American Express and $104,000 to an Indian hotel, which Calypso Destinations said was due to “significant pressure” to pay.
Banerjee’s report also suggested that Tyler had traded around $1.8 million while insolvent since “at least on or about July 1, 2021.”
“My investigations to date indicate that there is currently a maximum potential claim against the director for bad debts of up to approximately $1.8 million,” the liquidator’s report said.
He added that those suggestions could change as the investigation progresses or if other information emerges.
Calypso Destinations was placed into administration in April after the company collapsed under the weight of debts accumulated during Covid lockdowns (pictured, Sydney Airport)
The company was also found to not have ATAS accreditation with the Australian Travel Industry Association (ATIA).
AITA chief executive Dean Long said the collapse of Calypso Destinations was an “unfortunate situation” but also a warning to customers to book with reputable companies.
“ATAS accreditation means the company has undergone rigorous financial reviews and meets strict industry criteria designed to safeguard your travel plans,” Long said in a statement in May.
‘Always choose an ATAS-accredited company to protect your travel investment and enjoy peace of mind.’