The company applied to the Spanish courts and was put into voluntary administration on Tuesday.
Trade-only bed bank Transhotel has entered a three-month voluntary administration period as it seeks a buyer to resolve cash-flow issues.
The bed bank, based in Spain, is continuing to trade and will honour bookings. It is in the process of contacting all travel agent and supplier partners to reassure them bookings are safe and to avoid any “knee-jerk reaction” in the trade.
Under Spanish law, a company can put itself into voluntary administration for three months to get its finances back in order or prior to closing down.
A spokesperson said: “The company has not gone under. We are speaking to hotels to make sure bookings are honoured and third-party suppliers and agents will be contacted. Any agents who are concerned or have any questions should contact our sales team.”
Transhotel employs 900 people and works with 60,000 hotels and 78,200 travel agencies in the 24 countries in which it operates.
In a letter to the company’s associates, chairman Anselmo de la Cruz says:
“Dear colleagues,
As many of you are already aware, Grupo Transhotel has submitted a Voluntary Company Arrangement to the competent authorities, in accordance with Article 5 bis Ley Concursal (Insolvency Act, Spain). This said Voluntary Company Arrangement provides us with a period of (3) three months (extendable by one further month), to negotiate with the different creditors to in order for the payment of debts incurred to date.
At present, our primary and only objective is to ensure the viability of the company, minimise the maximum impact of these events within the industry, and to guarantee the rights of employees, clients, travellers and travel service providers that are relevant to us and our business activity. Talks with creditors, which have
already commenced, are moving towards building an enabling situation for overcoming this Voluntary Company Arrangement.
The approximately 600 company employees in Spain and its 22 international delegations are fully aware of the situation and are currently carrying out their respective responsibilities in accordance with the established guidelines.
I would like to personally convey my thanks for your continued support. My only wish is that everything returns to normal as soon as possible, as all our efforts are orientated towards this goal.
Thank you.
Anselmo de la Cruz
President – Grupo Transhotel”.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
