Calypso Destinations goes bust: Tour operator goes bust with $3m debt – as dire warning is issued to customers hoping for refund
A sports travel company has gone bust with debts of more than $3 million, leaving young cricketers and coaches without money to travel abroad.
Calypso Destinations was placed into administration in April after the company collapsed under debts incurred during the Covid lockdowns.
Westburn Advisory director Shumit Banerjee was officially appointed liquidator the following month and found the company had only $616 left in the bank.
The company helped arrange overseas and sporting tours, including a basketball tour of the US and cricket tours to India, the Caribbean and around Australia.
Kevin Tyler, managing director of Calypso Destinations, told Mr Banerjee that the business began to falter after international borders were closed due to Covid lockdowns.
High interest rates, short-term borrowing and a loan under a federal pandemic relief program had created a crushing debt load.
Mr Banerjee’s report to the Australian Securities and Investments Commission (ASIC) found the company owed more than $3.1 million to unsecured creditors.
One of them is Mr. Tyler, who is listed as owing $924,000 for “loans to the company.”
A sports travel company has gone bust with debts of more than $3 million, leaving young cricketers and coaches without money for overseas travel (pictured passengers at Sydney airport)
The report also found that the company had long struggled to meet debt payments, often on the due date or a day or two in advance.
In February, the company failed to attract sufficient investment to continue its financial crunch and went bankrupt.
Mr Banerjee said it was unlikely that creditors, including the families and coaches of young cricketers, would get their money back.
However, his investigation also revealed that the company had paid $674,400 for a number of transactions in the run-up to its collapse.
They paid $277,000 to American Express and $104,000 to an Indian hotel, among other things. Calypso Destinations said this was the result of “significant pressure” to pay.
Mr Banerjee’s report also found that Mr Tyler had traded about $1.8 million while insolvent, “since at least July 1, 2021”.
“My investigation to date indicates that there is currently a maximum potential claim outstanding against the director for insolvent trading of approximately $1.8 million,” the liquidator’s report said.
He added that these suggestions may change as the investigation progresses or if other information comes to light.
Calypso Destinations was placed into administration in April after the company collapsed under the burden of debts built up during the Covid lockdowns (pictured: Sydney Airport)
It was also found that the company did not hold ATAS accreditation with the Australian Travel Industry Association (ATIA).
AITA CEO Dean Long called the demise of Calypso Destinations an “unfortunate situation” but also a warning to customers to book with accredited companies.
“ATAS accreditation means the company has undergone rigorous financial assessments and meets strict industry criteria, which are designed to protect 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.’
