Vantage Travel files bankruptcy, plans to sell assets to United Travel

By Sarah Lizee

Olympia, Wash., June 30 – Vantage Travel Services, Inc. filed Chapter 11 bankruptcy on Thursday in the U.S. Bankruptcy Court for the District of Massachusetts, according to a press release.

The company said in court documents that the Covid-19 pandemic had a substantial impact on its operations, as was the case throughout the travel industry.

Vantage said United Travel Pte. Ltd., an affiliate of Nordic Hamburg and Heritage Expeditions, has agreed to acquire Vantage's assets and will act as stalking horse bidder.

United Travel has agreed to pay $1 million, against which it may credit bid the outstanding balance of post-petition loans to be made to the debtor, and to pay additional future consideration based on a percentage of gross revenues generated by the purchaser over a five-year period starting Jan. 1, 2024.

United Travel has also agreed to provide credit to customers of the debtor who have paid, in whole or in part, for a trip reservation made with the debtor.

There is a $300,000 breakup fee under the stalking horse agreement.

The assets are subject to the liens and security interests of Henry R. Lewis, which holds a $35 million prepetition secured claim against the debtor.

The purchaser and prepetition lender have agreed to fund the debtor’s operations through the Chapter 11 case in line with an agreed budget.

The company has sought customary relief from the court to preserve the status quo pending completion of the sale.

Vantage is seeking approval to complete the sale promptly, subject to any higher and better offers that may be submitted through the court supervised sale process.

The company is hoping to close the sale by Aug. 11.

In its petition, the company listed 10,001 to 25,000 creditors, $1 million to $10 million in assets and $100 million to $500 million in liabilities.

Its largest unsecured creditors are Odyssey BBHP Owner Ltd., based in Maimi, with a $3.6 million business debt claim, Explorer BBHP Owner Ltd., based in Miami, with a $3.2 million business debt claim, Apollo River Management AG, based in Basel, Switzerland, with a $2.24 million business debt claim, Cruise Management International Inc., based in Miami, with a $1.81 million business debt claim, and Dan-Bunkering, based in Hellerup, Denmark, with a $1.38 million business debt claim.

Argus Management is serving as financial adviser and Casner & Edwards LLP as legal adviser to Vantage. Gordian Group, LLC is acting as investment banker.

Vantage is a Boston-based river cruise, small ship cruise and escorted land tour operator. The Chapter 11 case number is 23-11060.

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