News

Auto Europe to Act as Mediator in Avis v Affordable $2.2m Lawsuit

Auto Europe to Act as Mediator in Avis v Affordable $2.2m Lawsuit

Auto Europe, which is in discussions with Affordable Car Hire over a possible merger, has agreed to act as a mediator between Affordable and Avis Budget, which has filed a $2.2 million lawsuit against Affordable in New Jersey.

The court documents claim that Affordable has not met monthly payments since August last year and names Affordable Car Hire, 11 associated companies, and Directors Angela Day and her husband James Moore as defendants. The documents state that Day and Moore had told Avis Budget that “attempting to pay even a significant portion of the funds would render Affordable Car Hire bankrupt”.

Imad Khalidi, Chief Executive, Auto Europe, said: “As a partner with Avis, I want to talk to them to see if I can mediate. I am trying to help both parties. Affordable has an excellent business model and reputation and the UK travel agency business for car hire is very strong.”

Avis Budget and Affordable agreed the most recent version of a long-standing agreement last year, but the filing says Day and Moore signed personal guarantees on 18th March 2005. Avis Budget claims that this makes the two directors personally liable should Affordable fail to pay monthly invoices within 30 days, as well as for any legal fees.

Avis Budget also claims that the defendants are moving funds into the newly formed AffordableXtras and Affordable Cruising and has requested the court to impose a temporary restraining order to prevent the defendants transferring assets and compelling them to provide customer details.

The legal case is ongoing and no allegations have yet been proven.

Click to add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

NEIL STEEDMAN has been a trade journalist, copywriter, editor and proofreader for 50 years, and News & Features Editor for ‘Irish Travel Trade News’ for the past 40 years.

More in News

Pictured at the announcement of the charities of the year programme for 2017 at Ireland West Airport were (left to right), Eugene Connolly, Seamus Moran and Trisha Greavy, Mayo Cancer Support, Joe Gilmore, Managing Director, Ireland West Airport, ¡ine Kilgallon, Fundraising Manager, Western Alzheimers, Joe Brett, Fundraising Manager, Western Care, Pat Holmes, CEO, Western Alzheimers

Ireland West Airport Staff Select Charities for 2017

Neil SteedmanFebruary 25, 2017
explorist

The World of Hyatt is Launched

Michael FloodFebruary 24, 2017
Norwegian Aircraft Featured Image

Norwegian Unveils €69 Flights to USA from Three Irish Cities

Neil SteedmanFebruary 23, 2017
Kannika Mac and Emma Arnott welcome guests to the Amazing Thailand Roadshow in Dublin

Amazing Thailand Roadshow Visits Dublin

Neil SteedmanFebruary 23, 2017
Travel Solutions get a taste of Thailand

Amazing Thailand Roadshow Visits Belfast

Neil SteedmanFebruary 23, 2017
Hertz Air France Agreement

Hertz and Air France Launch New Car Rental Products and Services for Passengers

Neil SteedmanFebruary 23, 2017
Totalstay Home Page

Totalstay Signs Hotel Distribution Agreement with Amadeus

Neil SteedmanFebruary 23, 2017
Emirates Phnom-Penh Cambodia

Emirates to Fly Daily to Phnom Penh in Cambodia

Neil SteedmanFebruary 23, 2017
CLIA Claire Brighton

CLIA Elects Claire as New Chair for Travel Agent Advisory Council

Neil SteedmanFebruary 23, 2017

Copyright © 2016 Belgrave Group Limited, C4 Nutgrove Office Park, Nutgrove Avenue, Rathfarnham, Dublin 14, Ireland