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Island Escape Cruises NZ receivership leaves Kimberley passengers devastated

The collapse of a luxury boat charter company operating off Western Australia's coast has devastated passengers with some demanding tens of thousands of dollars compensation.

Island Escape Cruises NZ, which cancelled a series of 12-day voyages, is in the hands of receivers Calibre Partners NZ.

The company's 53.5 metre superyacht, Island Escape, has been impounded at Broome Port, with a federal court order restricting its movements and operations.

Queensland man Murrie Taylor was booked to go on a cruise in early July from Broome, but said his trip to paradise quickly turned into a nightmare.

He and other passengers were waiting in his hotel lobby to be collected by the cruise company.

When he queried why the bus was late, he was told it would not be picking up passengers.

"We were gobsmacked basically," he said.

"We were left stranded … and we had no accommodation that night."

Passengers fear for refunds

Mr Taylor said he had paid about $30,000 for the trip when he and his wife had to spend thousands more on emergency accommodation and flight changes after cancellations left them stranded in Broome.

"It's not only the financial cost, it's the burden of the heartache it's caused a lot of people and it's just disgusting," he said.

Naomi Hunter and her husband, both from NSW, said they spent nearly $30,000 on tickets for a trip in August that never happened.

Ms Hunter said she was worried their money would not be returned.

"Whether we will ever be eligible for anything, I don't know," she said.

'No cash' to pay refunds 

Other customers vented their frustration on the company's Facebook page, which has since been taken down, warning would-be travellers against booking future cruises.

Calibre Partners NZ representative Neale Jackson said refunds were unlikely at this stage.

"We do not yet know what led the company being in this position," Mr Jackson said.

"It cannot pay any refunds because it does not have any cash to do so.

"The company did not employ any staff at the date we were appointed, so [as far as we understand] there are no claims for wages."

Mr Jackson said the customers would join a list of the company's other unsecured creditors.

"We expect that money customers are owed will rank as an unsecured claim against the relevant company," he said.

He also said there was another entity of Island Escape Cruises that was not in receivership.

"One thing to note is that we are receivers of two entities domiciled in New Zealand; Island Escape Cruises (NZ) Ltd and Seasons Shipping Ltd," he said.

"We are not receivers of the entity domiciled in Australia [Island Escape Cruises (Australia) Pty Ltd]."

Customers start legal action

Mr Taylor said a lack of communication from the company and it's chief executive Erik Helseth had added to his distress.

"After about seven attempts to contact them, he answered the phone," Mr Taylor said.

"He apologised and said that all persons would get a refund … I never heard from him again."

Ms Hunter said she was also left feeling confused after paying about $30,000 to the company.

"We felt like we were really on a bit of a limb," she said.

"I didn't know who to reach out to."

COVID-19 border restrictions made it difficult for tourists to book travel insurance in WA, leaving many of the travellers relying heavily on refunds.

"Because of COVID and the border crossings, it was extremely hard for an Australian resident to get travel insurance for a trip within Australia," Mr Taylor said.

"We've actually started some legal action against Island Escape Cruises Australia to see if we can recoup any money," he said.

The ABC has made attempts to contact Island Escape Cruises NZ for a comment but has not received a response.

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