Online travel agency BestJet Travel, which went into liquidation just before Christmas leaving thousands of travellers out of pocket, has found itself in even more hot water.
In a damning report to creditors, BestJet Travel’s administrators, Pilot Partners, revealed a number of serious concerns about the company.
These ranged from the possibility that BestJet was trading while already insolvent to the fact Michael James may have been secretly acting as a director during his ban on managing corporations.
In the report, Pilot Partners suggested that BestJet’s directors “may have breached their obligations to act in good faith and in the best interests of the company” in the lead-up to the collapse.
The administrators believe the company “may have been trading whilst insolvent from early December 2018”.
They also noted that financial records were incomplete, casting suspicion over BestJet’s directors.
More questionable activity contained in the report was the fact the BestJet removed computers and security equipment from the company’s Brisbane office before administrators could get to them. This matter has been reported to the Queensland police.
BestJet was founded by Rachel James in 2012, just weeks after her husband Michael James had his airline, Air Australia, collapse with debts of up to $100 million.
As a result of that collapse, Michael James was banned from managing corporations for three years.
Despite this, there are now concerns he may have been secretly involved in managing BestJet.
In its report to creditors, the administrator said “although not appointed as director or officer, [Michael James] acted in the position of a director or officer”.
The report said he was a signatory on the company’s bank accounts right up until November 20 and had transactional payment rights on its accounts.
Further to this BestJet was supposedly acquired by McVicker International in November 2018, headed up by Robert McVicker Jr, in a 100 per cent share transfer.
But yesterday’s report said 50% of these shares were held on trust by McVicker International for Rachel James.
The investigation is ongoing.
- READ: BESTJET COLLAPSE: Travel Advisors step in to rescue affected travellers
- READ: BESTJET COLLAPSE: 10,000 customers may be affected by online site’s liquidation