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Travel boss banned for 15 years 14 May 2013

The director of a holiday company has received a 15-year director disqualification – the maximum length of disqualification – following an investigation by the Insolvency Service.

Abdulkadir Aydin, director of Goldtrail Travel Limited, was banned for gross mismanagement of company affairs.

David Brooks, a chief examiner for the Insolvency Service, said: “It is unacceptable that company directors should seek to put their own financial interests above their duty to the company and its customers who have handed over their hard-earned money to pay for their holidays.”

Goldtrail went into administration in July 2010, with debts of approximately £2,324,000. Over 23,000 holidaymakers were stranded abroad and 110,000 prospective holidays were also cancelled as a result.

Aydin brokered deals for Goldtrail to purchase airline seats from two airlines, with a value totalling £3.9m, for which Aydin received brokerage payments of £4.04m, causing the company to crash.

In the nine months leading up to the collapse, Aydin also caused Goldtrail to make unexplained payments totalling over £6,350,000 to two Turkish companies, which were owned or controlled by his family.

A lack of company paperwork meant that the joint liquidators have been unable to confirm if the sum was meant to be paid to the Turkish companies or if it should have been returned to Goldtrail for the benefit of its creditors.

The investigation also found that Aydin failed to ensure that Goldtrail provided complete and accurate information to the Civil Aviation Authority (CAA) between May 2009 and June 2010.

As a result of the financial failure of Goldtrail, the Air Travel Trust incurred estimated costs of at least £20,281,000, of which £5,766,000 was the cost of repatriating 23,519 of Goldtrail’s customers back to the UK.

 

 

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