Joystar, the bankrupt host travel agency, reported it has $2.6 million in liabilities but only $18,000 in assets.
Joystar told the U.S. Bankruptcy Court in Fort Lauderdale that the assets comprise mostly computers, furniture and other office equipment and $535 in cash. Four other bank accounts are listed as empty.
As for liabilities, Joystar said $980,000 has 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 remaining $110,000 is salaries due to majority owners William Alverson, CEO ($64,000) and Kathy West, executive vice president ($23,000). The third salary claim belongs to a California-based employee, Jason Borromei ($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 ot $30,000.
Joystar listed Alverson and West as controlling shareholders of the publicly traded company, with each holding 34% of shares.
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.
