Recently it was announced that both Google and IRS are walking towards bankrupt travel firm’s list of creditors. Before delving into the news any further it is necessary to make a distinction between a creditor and debtor.
Creditor & Debtor
Creditor is a person who has issued some funds, a certain sum of money as a loan on interest basis to a person who is in need of that money. The person receiving this money is called as debtor.
Bankruptcy is a situation when the person, firm or a company is unable to pay the interest bearing liabilities; not able to pay its interest and as well as the principal.
Google & IRS
Who in the world is not familiar with Google? Every person who uses computer and internet knows Google well; it is the leading search engine, besides this Google is providing some other accessories like Gmail, Image browsing, E-books and many more.
Internal Revenue Service is US based agency for the collection of taxes and the enforcement of tax laws.
Google and IRS on bankrupt travel firm’s list of creditors
It is reported that the bankrupt travel firm 1800 has left thirty big creditors behind including Google and IRS. The 1800 company is trying to defend its position and wants to carry on its business however it is declared as bankrupt. The company is taking the support of bankruptcy protection chapter eleven and is demanding safe hand for its Irish parent company also.
Creditors have their bankruptcy lawyers who are ready to take on the case for $125000. Google and yahoo are payable unrevealed sums for marketing.
1800 hotel is liable to pay federal taxes to IRS, social security payments to the US Department of Labor and security and local taxes to the city of Tampa. The Recruiters Aquent, Blue Shield and Exact Target are also included in the creditors list.
So Google and IRS have to bear big losses for the time as 1800 hotel has gone bankrupt. It was an online booking hotel which accommodates its customers in US, the UK, Spain and Greece. As the hotel has gone bankrupt the bookings of the customers were cancelled by the permission of the court and the travelers have to suffer. It is a big loss for all the thirty big creditors including Google and IRS but they have to wait and hope may the Hotel again in a position to pay its debts and fulfill its liabilities or the court may not allow this hotel to operate its business more.
The 1800 hotel has filed that bankruptcy to the court to protect its customer’s reservations and want the wholesale hotel reservation suppliers to accommodate its customer and they will restructure their debt to fulfill the creditor’s needs.
So there is a chance that Google, IRS and other creditors may get their outstanding money back, let’s hope for the best and wait to see what is going to happen.