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Your email address will not be published.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

IMG_3472

Turkish Airlines and Partners Promote North Cyprus

Michael FloodMarch 28, 2017
Lorraine Quinn, Celebrity Cruises, meets Lisa Brennan

Ian Wins Paradores Prize at Irish Travel Industry Trade Show

Michael FloodMarch 28, 2017
IMG_3531

Shannon Airport Sponsors TIGS at Portmarnock Links

Michael FloodMarch 28, 2017
1-IMG_2212

Portugal Shows Growth in Irish Visitor Numbers in January

Michael FloodMarch 28, 2017
Travel Trade Deals

Great Value Travel Deals – 28th March 2017

Sarah SlatteryMarch 28, 2017
Transavia_2

New Transavia Flights from Dublin to Munich

Michael FloodMarch 28, 2017
sunway_logo_dark_bg Hi-Res

Sunway Has Job Vacancies

Michael FloodMarch 28, 2017
Dublin Airport Departing Passengers

Dublin Airport Named One of World’s Best Airports

Michael FloodMarch 28, 2017
IMG_1541

Dee Burdock Attends White House Shamrock Presentation

Michael FloodMarch 28, 2017

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