Agent Issues Joystar has $18,000 in assets but owes $2.6M, court is told By Nadine Godwin / March 23, 2009 Share 1 -- Joystar, the bankrupt host travel agency, reported it has $2.6 million in liabilities but only $18,000 in assets. Those assets comprise mostly computers, furniture and other office equipment and $535 in cash, Joystar told the U.S. Bankruptcy Court in Fort Lauderdale. Four other bank accounts were listed as empty. As to liabilities, it said claims totaling $980,000 have a priority status among unsecured debts, and the bulk of that is the nearly $870,000 owed to the Internal Revenue Service and the state of California. Joystar said the remainder was salaries due: $64,000 to CEO William Alverson and $23,000 to Executive Vice President Kathy West, the majority owners. A California-based employee, Jason Borromei, is due $23,000. All other liabilities were described as unsecured and "nonpriority." A separate document indicated that Joystar's attorney in the bankruptcy proceeding, David Langley, collected a fee of $30,000. Joystar listed Alverson and West as controlling shareholders of the publicly traded company, with each holding 34%. In a large file of financial data required by the bankruptcy court where Joystar's Chapter 11 petition is pending, the company revealed its income has been sliding since at least 2006, when it claimed an income of $6.9 million. In 2007, that number was $4.7 million, and in 2008, it was $3.2 million. As a company in a Chapter 11 proceeding that envisions a restructuring, Joystar and its parent, Travelstar, estimated an average future gross income of about $16,500 per month and future expenses of $1.6 million per month. Meanwhile, the court tapped five individuals for the creditors committee, two of whom are travel agents. Drew Axelrod, the agent who led the effort by 15 travel agents to force Joystar into bankruptcy, was not named to the group.