The trustee appointed to oversee JG Worldwide's bankruptcy
has filed a motion to have the case dismissed, saying company officer James
Saleh is refusing to participate in the "barebones" case that he
The court has given parties until Sept. 19 to respond to the
motion, with a hearing set for Sept. 26.
Saleh, the partner of JG Worldwide CEO Jena Gardner, filed a
Chapter 7 bankruptcy petition for the company after complaints and lawsuits
began mounting this summer, accusing JG Worldwide and its tour operators,
Revealed America and Heritage Tours, of bilking travelers and business partners
out of millions of dollars.
The company has since shuttered its operations, leaving
untold numbers of travelers with hotel reservations and tour bookings that were
never made, even though they had paid in full.
While travel agent Natalie Lenrow, who had to completely
rebook and pay for a $30,000 national parks tour she had booked for her clients
through Revealed America, said she was able to recoup their loss because of the
insurance her clients bought, policies vary so the lack of a formal bankruptcy
filing could impact the ability of some to recover lost money.
A dismissal could spell good news for creditors, however,
who would regain their right to sue for all monies owed them if the bankruptcy
shield is removed.
In a filing with the bankruptcy court last month,
court-appointed trustee Salvatore LaMonica sought the dismissal, saying that
Saleh, after filing a "barebones voluntary petition for relief" from
lawsuits and creditors, has failed to produce the financial documents necessary
to support the filing. Nor has he hired an attorney. The law, LaMonica said,
prohibits debtors from representing themselves.
In its initial filing, JG Worldwide said it had up to $10
million in debt and no assets to pay creditors.