Vantage Travel files plan of liquidation and disclosure statement

By Sarah Lizee

Olympia, Wash., Sept. 25 – Vantage Travel Services, Inc. filed a Chapter 11 plan of liquidation and related disclosure statement with the U.S. Bankruptcy Court for the District of Massachusetts.

The liquidation of the debtor’s estate has been accomplished mainly through a sale of the debtor’s business assets.

Specifically, the debtor sold the assets on Aug. 18 to Pacific Travel Partners, LLC (PTP) for $2 million in cash, and an earnout provision computed on certain revenues generated by PTP over the next five years.

In addition, PTP is providing a credit for future travel to the debtor’s customers equal to 100% of those customers’ claims against the debtor.

The plan provides for the creation of a creditor trust for the benefit of the debtor’s customers and unsecured trade creditors.

Chief among the creditor trust assets are possible claims and causes of action against third parties, principally avoidance actions arising under Chapter V of the bankruptcy code.

For the class 1 claim, all of the assets constituting Henry R. Lewis and the HRL trust’s prepetition collateral will be transferred to Henry R. Lewis and the HRL trust, except for estate causes of action and a certain amount of cash. Any deficiency of this claim remaining after the liquidation of the prepetition lender’s collateral will be treated as a class 6 claim.

The class 2 and class 3 claims, held by United States Surety Co. and American Contractors Indemnity Co., and Brookline Bank, Alitalia, Delta Air Lines and Societe Air France, respectively, are unimpaired.

For class 4, on the effective date, JPMorgan Chase Bank will pay a certain amount of the customer deposit funds to Henry R. Lewis and the HRL trust on account of its secured claim in class 1. JPMorgan will retain the remaining customer deposit funds and may exercise its setoff rights with respect to the JPMorgan setoff account up to the amount of its allowed claim arising out of the debtors’ customers’ ACH chargeback claims that have been properly honored by JPMorgan.

Class 5 priority non-tax claims are unimpaired.

Each holder of a class 6 general unsecured claim will be deemed to hold a pro rata beneficial interest in the creditor trust.

Class 7 interests in the debtor held by the HRL Trust and the 1998 Trust will be canceled with no distribution.

Vantage is a Boston-based river cruise, small ship cruise and escorted land tour operator. The company filed bankruptcy on June 29 under Chapter 11 case number 23-11060.

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