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Update – Prestige Travel Loses Bankruptcy RulingNovember 7, 2012 By: Adam Leposa
Prestige Travel Inc. suffered a setback in bankruptcy court when U.S. Bankruptcy Court Judge Bruce Markell ruled against the company’s request for a temporary restraining order to force hotels and resorts to use money from letters of credit to cover future guests who had booked through the company, the Las Vegas Review-Journal reports.
The move could threaten bookings customers had made through Prestige’s online subsidiary, TripRes. Already Prestige clients have been forced by hotels to pay for their room again.
Nile Leatham, an attorney for MGM Resorts International, told the Las Vegas Review-Journal that MGM has decided to honor reservations booked through TripRes provided that travelers make a second payment at a discounted price. MGM is Prestige’s largest creditor.
In another report from the Las Vegas Review-Journal, President of TripRes.com and head of Prestige Travel Leo Falkensammer had blamed the bankruptcy on the challenges the company’s online division faced competing with direct booking through Vegas hotel and resort websites, as well as an overall slow economy.
Previously, producers of smaller shows on the Las Vegas Strip had worried that the bankruptcy could mean lost revenue from customers who had booked through TripRes, which could threaten the viability of smaller shows on the Strip.
Keep visiting www.travelagentcentral.com for the latest Vegas news, developments and updates.