X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Attorneys for embattled ByeByeNow.com said the company plans to sue Worldspan Inc., the reservation system owned by TWA, Delta and Northwest airlines, for breaching a contract that provided the now bankrupt company with financing of more than $100,000 a month. ByeByeNow claimed Friday in U.S. Bankruptcy Court in Fort Lauderdale, Fla., that Worldspan CEO Paul Blackney, who also served on ByeByeNow’s board of directors, arranged for Worldspan to withdraw the contract from the Pompano Beach, Fla., online travel company when he learned that ByeByeNow would file for Chapter 11 protection from creditors. The firm filed last Wednesday. “We don’t believe there’s any basis for that cancellation,” said ByeByeNow attorney Paul Battista, of Miami’s Genovese Lichtman Joblove and Battista. Meanwhile, a disgruntled ByeByeNow employee asked why ByeByeNow hired TV host Regis Philbin as spokesman when it couldn’t pay its employees’ salaries. ByeByeNow’s partnership with Worldspan allowed it to access Worldspan’s 30,000 affiliated travel agencies and provided the company with cash flow. ByeByeNow’s Web site linked online customers with the bricks-and-mortar travel agencies. Worldspan is ByeByeNow’s largest unsecured creditor with a $4.5 million claim. The company’s only assets, aside from the Worldspan contract, are its software and network of 200 travel agencies. Battista, who likened the assets to “ice melting on the streets of Fort Lauderdale,” said he’d file suit today in a bid to hold on to company assets, including the contract. Worldspan is not ByeByeNow’s only headache. Former employee Terence Tress seeks redress for $10,594 in wages. “My client is a little person, a working person, who I fear will be lost in the big business shuffle,” said Laura L. Mall, Tress’ attorney. The company hired Philbin in July, around the same time it began layoffs. “If they had the money to pay Regis, surely they could’ve paid my client,” Mall said. Judge Raymond B. Ray said he’d sign an interim order permitting ByeByeNow to use $110,000 in financing from investment group Chicago 216e, which may buy the company’s remaining assets. The money will pay the company’s 36 current employees and fund operations through Wednesday, when Judge Ray will hear the matter again. Battista said in court that the company is pursuing a controlled liquidation rather than reorganization and that without the funds employees will leave. Mall and Tress, who doesn’t stand to get any money from the current payroll, aren’t thrilled about the ruling. “This company is being allowed to pay $100,000 a month in wages to current employees while others remain unpaid,” Mall said.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.