Isle of Man Holidays Ltd., a travel company based in Dublin, has informed the Department of Public Enterprise that it is unable to meet its obligations to customers with overseas travel contracts.

An answering machine on the company's telephone was redirecting callers to the department yesterday and a note attached to the door of its Eden Quay office did likewise.

The department has advised people who made bookings with the company, which also trades as Quay Travel and Everyman Holidays, that there were adequate funds available under the statutory bonding scheme to ensure that their holiday arrangements could continue as planned. Alternatively, some customers may be refunded.

Isle of Man Holidays held both a travel agent's and a tour operator's licence. The Travel Trade Division of the Department of Public Enterprise received the relevant files from the company on Monday and is making arrangements to ensure that any customers who may be abroad at present will be able to complete their holidays.

It appears from the latest accounts filed with the Companies Registration Office that Isle of Man Holidays made a loss of £55,000 in the year ending 31st October 1999. The company appears to have been funding its operations through bank loans and overdraft. The total bank loans and overdraft increased from just under £20,000 in 1998 to £116,619 in 1999.

Frank McHugh & Co chartered accountants have been the auditors of Isle of Man Holidays since 1982.

The auditors qualified the report, stating that in their opinion "there did exist at 31st October 1999 a financial situation which ... would require the convening of an extraordinary general meeting of the company".

Those who have bookings with Isle of Man Holidays should telephone the Department of Public Enterprise, Travel Trade Division on 01 6611700. Claims under the company's bond must be made within the next 58 days.