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THE Civil Aviation Authority has pulled the bond of Golden Sun Holidays.
The move follows a difficult summer for the Greek specialist which has been dogged by rumours of a fall-out with local hoteliers over unpaid bills.
The operator was the subject of a Watchdog report on BBC1 earlier this week and has been under investigation by ABTA. The company has also reportedly struggled to pay staff on time.
A CAA spokesman said the operator had a "fairly large” number of customers overseas and expects a large number of claims. It was licenced to carry just over 200,000 passengers.
The CAA has set up an advice line on 01668 686868 for worried customers.
Golden Sun Holidays G roup chairman Lefteris Solomou refused to comment.