STA Travel Australia shuts

STA Travel Group's Voluntary Administration Appointment

Following STA Travel UK ceasing trading, it appears that globally STA Travel Group is being wound down. The purpose of the FAQ below is to assist customers of the Companies in understanding the voluntary administration appointment, how it affects their debt and what happens next.

Common Questions about STA situation?

  1. Can I get a refund? No cash refunds for cancelled trips
  2. Credit for cancelled trip? STA won’t honour any credit for cancelled trips
  3. Current bookings? Contact airline, hotel or travel operator directly
  4. Can I speak to STA staff? Not possible

What has happened to STA?
Given the failure of STA Travel Group’s Swiss parent, the directors determined that the Companies were insolvent or were likely to become insolvent and appointed Jason Tracy and Tim Norman of Deloitte as voluntary administrators (Administrators) on Friday, 21 August 2020 to take control of STA Travel Group’s business.

What is the role of the Administrators?
The Administrators have assumed responsibility for the business and operations of STA Travel Group. We are responsible for dealing with the staff, customers and suppliers of the business from the date of our appointment. The Administrators have commenced an urgent assessment of the financial position of the Companies to determine the viability of a recapitalisation, sale and/or asset realisation strategy. We will continue to work with STA Travel Group management and its overseas administrators to seek the best outcome for customers and creditors.

What happens from here? Who can I contact?
We will be working as quickly as possible to understand the business operations and determine the status of all customers of the Companies.

STA Travel Group operates as a global group, and its operations are complex. Customer deposits, for example, are in many cases not held in Australia, and third party companies overseas are also involved. This is a challenging situation, and the Administrators are investigating possible options (if any) available to customers to allow them to recover any prepaid bookings or continue their travel plans.

Given all Australian STA Travel stores and its call centre were closed prior to our appointment and its website is down, access to STA personnel is not possible. In the interim, customers holding bookings should contact their airline, hotel or tour operator regarding the status of their bookings. You can also consider contacting your credit card provider if travel bookings were paid by credit card.

You can contact the Administrators’ office by email at STATravel@deloitte.com.au, however given the volume of enquiries we are receiving, customers should expect delays in our response. We will provide a further update as soon as possible and appreciate your patience.

In the event that you are ultimately found to be a creditor of the Companies, additional information will be provided to you. In the interim, we provide some further information below for creditors:

  • The Administrators have to hold a meeting of creditors within the first 8 business days from appointment. The purpose of this meeting is to provide information to the creditors on the process and confirm if creditors wish to form a committee. The Administrators then have to investigate the affairs of the Companies and report back to creditors and employees on their findings. The Administrators will also make a recommendation to creditors regarding the future of each of the Companies. This second meeting is usually held within 25 days of their appointment but may be extended by the Court if the Administrators think an extension is in the best interest of creditors.
  • If you would like to participate in the meeting, you will need to complete a Proof of Debt Form and also a Proxy Form if you are an individual representing a company or another individual. These forms will be made available on Deloitte’s website. We will advise shortly you when that webpage is set up and how to locate it.
  • The Proof of Debt and Proxy Forms should be returned to STATravel@deloitte.com.au
  • We will keep you as updated as we can during the process by updating the STA Travel Group page on Deloitte’s website. We will advise shortly you when that webpage is set up and how to locate it.

Will I be paid? When?
The effect of the appointment of Voluntary Administrators is to place a moratorium (freeze) on the payment of amounts due to creditors for debts incurred up to the date of the appointment of the Administrators. This allows the Companies breathing space whilst the Administrators explore options that will either allow the business to continue, or if not, allow it to maximise the returns to creditors.

No payment can be made in relation to this pre-appointment debt during the administration process. However, customers may lodge a pre-appointment creditor claim against the Companies by lodging a Proof of Debt Form. These forms will be made available on our website. We will advise you shortly when that webpage is set up and how to locate it.

How long will the process take? When can I expect my money?
Pre-appointment creditors can only be paid when the Companies either enter a deed of company arrangement or liquidation. Any amount paid will be contingent upon the success of the recapitalisation sale and/or asset realisation process. Further details regarding the length of the voluntary administration process will be made available at the forthcoming first meeting of creditors.

Can I get a refund for a cancelled trip?
Due to the current circumstances we are not currently in a position to offer any cash refunds for cancelled trips. Customers holding bookings should contact their airline, hotel or travel operator regarding the status of those bookings. You can also consider contacting your credit card provider if travel bookings were paid by credit card.

What happens to my credit for cancelled trips?
Due to the current circumstances we are not currently in a position to honour any credit for cancelled trips. Customers holding bookings should contact their airline, hotel or travel operator regarding the status of those bookings. You can also consider contacting your credit card provider if travel bookings were paid by credit card.

I have a current booking. Will administration affect it?
If you still have a current booking, the administration may have an impact on the status of your booking. Customers holding bookings should contact their airline, hotel or travel operator regarding the status of those bookings.

Who should I contact if I still have more queries?
Please direct your queries to the Administrators’ staff by email to STATravel@deloitte.com.au.

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