It has been reported that Flight Reclaim Limited (a claims management company) has collapsed financially due to the pandemic. Almost 5,000 consumers are now owed debt by the company.
In recent months, travel restrictions and declining passenger numbers have had a major impact on the compensation industry. Earlier this month, the number of passengers on EasyJet‘s planes was reported to have decreased by 99.6%. British Airways said that its passenger numbers in the second quarter of 2020 fell 98%.
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Why has Flight Reclaim Limited gone into administration?
Flight Reclaim Ltd was founded in October 2014 and is owned by the same people behind Blue Panda Finance, which processes payment protection insurance and payday loan claims. The company could help claim flight compensation of up to £510 if the service was changed or a connecting flight was missed.
Flight Reclaim Limited had administrators appointed last month due to the fall of people travelling due to the Covid-19 pandemic. A statement was published last week where it was revealed that company is now in debt in the sum of almost £3 million.
4,753 consumer creditors are owed £2.45 million. Potentially these customers are those who opened claims before the company went into administration. However there is no indication that their claims are still being processed or whether compensation, if any, will be recovered.
How can we help if your company is going into administration?
We add value by our legal services by guiding clients as to how best companies can be rescued and turned around and how debts can be written off or restructured. We can advise on administration or proposals of either Company Voluntary Arrangements (CVAs) (as Travelodge have recently done) or Partnership and Individual Voluntary Arrangements (PVAs or IVAs). To achieve a company rescue you must act quickly; contact us as soon as possible. The more time available to build an alternative business plan, the more successful it is likely to be. If your company can be saved, whether this is achievable through restructuring or writing off debts, the team can help by offering clear, practical and easy to understand advice which deciphers the Insolvency Rules and regime.
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