Prestige Travel files for bankruptcy
Prestige Travel, with 10 offices scattered around the Las Vegas Valley, filed for Chapter 11 bankruptcy protection Tuesday after a disruption in the credit lines essential to the business.
Started in 1980, Prestige Travel has lined up preferred booking agreements with 49 travel providers, many of them on the Strip. According to court papers, it owes nearly $3 million to MGM Resorts International properties, $1.3 million to other resorts, $795,000 to Cirque du Soliel shows, plus $1.3 million to American Express and other amounts to hotels outside Las Vegas.
According to court papers, Prestige maintained a $4.75 million letter of credit with City National Bank to satisfy the hotels that they would be paid if the agency, which collected money from customers, became insolvent. Prestige attorneys contend that recent changes in the collateral for the letter of credit rendered the company insolvent.
