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More Agents Join in JoyStar BankruptcyJanuary 8, 2009 By: George Dooley
Nineteen additional creditors will be filed today in U.S. Federal Bankruptcy Court for the Southern District of Florida against Joystar for $76,530.75 in defaulted past due commissions, according to Drew Axelrod. Axelrod is the lead agent in the December 31, 2008 filing of a Chapter 7, Involuntary Bankruptcy petition against Joystar/TravelStar.
Axelrod said the recent filing makes for a total of 34 creditor petitioners for the official amount owed by the default debtor Joystar of $227,530.75 with signed court forms. “As many as 70 travel agents have notified us in writing and by e-mail, of defaulted commissions and they all state they would be petitioning the U.S. court for their lost commissions which total approximately $350,000,” Axelrod said.
More petitions will be filed on Monday, January 12, according to Axelrod. “Agents are contributing 5 percent of what they are owed to a legal fund," he said. "Checks are also coming in from non-creditors. One sympathetic host agency sent in a check for $500 to the 'Joystar Agents Legal Fund' to help defray the court costs and attorney's fees.”
The Joystar creditor agents request that all travel suppliers "hold" any outstanding commission dispersements and, also, host agency annual override payments until such a time that the U.S. Bankruptcy court gives further direction or resolves this matter.
“To date, Joystar has not responded to our summons, which were sent to their Aliso Viejo,
CA, Sunrise, FL, Jupiter, FL and Palm Beach Gardens, FL, addresses," Axelrod. "Also, Federal summons were sent to Joystar Board of Director, William Fawcett of Coto de Caza, CA and Joystar Executive Vice-President Jo Beemer and Jason Borromei of Laguna Niguel, CA.”
“Many attempts to contact Joystar offices by phone, fax, e-mail, and certified U.S. Mail have resulted in no response from anyone associated with Joystar, including an attorney,” Axelrod reports, urging agents who are missing Joystar commission payments to e-mail him at [email protected]. The case number is 08-30191-RBR.