Excel gains from sale of Golden Sun offices

EXCEL Aviation is to receive proceeds from the sale of Golden Sun Holidays’ £4.5 million London offices to repay a £2 million loan.

In July this year the aviation group laid claim to the failed tour operator’s Kentish Town and Kingsbury offices, valued up to £4.5 million, after Golden Sun said it would not be able to pay back a £2 million loan which helped it through 2003/04 winter trading.

Last month, the Civil Aviation Authority pulled Golden Sun Holidays’ 200,000-passenger £9.8 million bond after Excel informed it the operator was unable to pay for aircraft seats in advance.

The Bank of Cyprus then jumped to the front of the queue after seizing Golden Sun’s assets in a bid to regain debts of more than £1 million. Parent company Golden Sun Leisure is believed to owe up to £16 million.

Excel Aviation managing director Steven Tomlinson confirmed the group will receive money from the sale of the offices after lending Golden Sun money last year, although he refused to reveal the amount.

"The offices are security for the loan, as we never planned to call it in. But when the company said it could not pay us for flights we went to the CAA, as we are not in a position to continue to loan money.”

He added: "This has cost us a lot of money.”

Golden Sun’s receivers Ernst and Young confirmed the two office buildings are up for sale. Any outstanding money raised – above the figure owed to the Bank of Cyprus and Excel – will be put into the general creditors’ pot.

Meanwhile, the Cyprus Stock Exchange regulator, the Securities and Exchange Commission, is investigating the timing of the operator’s collapse. It is questioning the company’s version of events and wants to know when it was informed of the problems which led to its failure.