High Court says 9/11 lead to collapse of Usit

The September 11th attacks on New York lead to the collapse of the Usit travel group which closed down in 2001 with debts of …

The September 11th attacks on New York lead to the collapse of the Usit travel group which closed down in 2001 with debts of up to €155 million, the High Court heard today.

Mr Justice Michael Peart refused an application by the group's liquidator to suspend the original directors of Usit World Plc.

Liquidator Ray Jackson alleged that the original directors, Gordon Colleary, his wife, and three other directors had not acted honestly and responsibly in conducting company affairs.

Mr Justice Peart said in a reserved judgment that the lack of filing of returns and proper bookkeeping had been blamed by the directors on the sudden resignation of auditor. But he said even if there had been a failure to observe these requirements they had not been responsible for the company's demise.

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"I am not left with an impression, taking both companies as a whole, Usit World Plc and Usit Ltd, that this was a group which was run in some sort of haphazard, flipshod, reckless or even unprofessional manner," Mr Justice Peart said.

He said the catostrophic decline in fortune after August 2001 could be blamed on the decision of the board to buy the remaining 60 per cent shareholding of the US Student Travel Company, TPS, before Ulster Bank funding had been put in place which had been followed by the instantaneous fall-out of September 11th.