Russia’s leading tour operator Tez Tour’s Turkish business unit Alkan Group has requested for the suspension of bankruptcy for over 322 million Turkish Liras ($136.3 million) of debts.
The company couldn’t pay its debts due to the economic crisis in Russia and Egypt. Alkan Group, based in Antalya, is the leading leisure travel group serving more than 2 million customers from 11 source markets.
According to the news on Turkey’s daily newspaper; Hürriyet, Alkan Group attracted 1 million tourists to Turkey last year, a majority of whom were Russians with higher income.
Alkan Group has 99 tourism agencies in Turkey and works with 1,272 hotels in around 40 provinces. Although its revenue reached approximately 1 billion Turkish liras ($423.5 million) in 2014, the group couldn’t pay a majority of the $136.3 million debts to hotels, with the remaining to banks.
Turkish court accepted the request for suspension of bankruptcy and appointed a judicial trustee to the company.
The company plans to raise equity capital and sell a number of properties to overcome the financial difficulties.