Agents File Federal Court Petitions to Force SunTrips Into Bankruptcy

From: Travel Trade

Four travel agencies seeking a combined $49,000 worth of unpaid sales commissions have filed involuntary petitions in a California federal court to force the tour operator SunTrips into a Chapter 7 bankruptcy.

The bankruptcy, if declared by the San Jose bankruptcy court, would potentially force partial commission repayments to hundreds of retail creditors.

The named debtor in the bankruptcy court papers is FS Suntours Inc., dba SunTrips.

San Francisco-based travel attorney Al Anolik, who is representing the agents, said the bankruptcy petitions are a follow-up to the breach of contract class action filed by two agencies against SunTrips on Jan. 31 in San Jose’s California Superior Court (Travel Trade, Feb. 20).

Unlike the fraud class action, the bankruptcy filing does not name the parent company of Suntours, OneTravel Holdings of Atlanta, as a debtor.