The fund that gets stranded holidaymakers back home now has a bigger hole than ever in it's finances after the recent problems in the travel industry, and with less take-up of holidays expected over the next few years it is difficult to know how this hole is going to be plugged.
The fund has recently paid out £90m in circumstances where the corresponding bonds were only worth £48m, adding to the pre-existing £20m deficit - meaning that ATOL is now £40m in the red. Reports say that the fund has a £60m overdraft facility that the bank (Barclays) may not be extending, needless to say one more major collapse could see ATOL sunk. There is a £250m insurance with AIG, but as AIG itself is not exactly financially independant at the moment. Revenue may be increased through the APC in October, but October is a long way off...
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