Google and IRS on bankrupt travel firm's list of creditors

BANKRUPT TRAVEL firm 1800 Hotels has left behind at least 30 major US creditors, including Google, Yahoo! and the Internal Revenue…

BANKRUPT TRAVEL firm 1800 Hotels has left behind at least 30 major US creditors, including Google, Yahoo! and the Internal Revenue Service US tax authorities, according to court documents lodged in Florida.

The company presented a list of creditors to a Florida court as it announced it is consolidating Chapter 11 bankruptcy protection for both its Irish parent company, Happy Duck, based in Dublin 3, and for “1800 Hotels”, which it describes in other documents as a “fictitious” entity that allows Happy Duck to trade in the US.

Creditors include their bankruptcy lawyer, who has agreed to take on the case for a $125,000 (€96,700) retainer. Internet search engines Google and Yahoo! are owed undisclosed sums for advertising.

1800 Hotels owes federal tax to the IRS; local taxes to the city of Tampa, Florida, where 1800 is based, and social security payments to the US Department of Labour and Security. Recruiters Aquent, health insurance company Blue Shield and e-mail marketing firm Exact Target are also among the creditors.

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The bankruptcy of 1800 Hotels has left at least 3,600 customers around the world without hotel accommodation, according to its own estimates.

If the Tampa bankruptcy court accepts the Chapter 11 proceedings, both Happy Duck and 1800 Hotels will be allowed to continue trading, even while bankrupt.

All creditors will be notified in coming days of 1800’s intention to consolidate both Chapter 11 cases.

The bankruptcy court said last week it would hold a creditors’ meeting on August 11th in Tampa. Foreign creditors can join the court proceedings and ask for an adjournment if they need time.

Lawyers for 1800 are due in bankruptcy court in Tampa tomorrow for a hearing on their emergency injunction against several holiday reservation companies that have refused to handle any more 1800 clients. All the travel companies involved claim 1800 owes them money.

However, the company’s lawyers allege that the defendant travel firms, based in the US, the UK, Spain and Greece, should fulfil existing contracts and not leave 1800 customers stranded.