Orizonia Corporation

Orizonia Corporation, also known as the Orizonia Group or Orizonia Corporación, was a Spanish tourism company headquartered on Mallorca in the Balearic Islands. It operated across tour operating, retail travel agencies, airline services, cruise activities, and related travel businesses. The company emerged in 2006 when Miguel Fluxà, owner of Grupo Iberostar, reorganized and sold the group’s travel-distribution and tour-operating divisions while retaining Iberostar Hotels and Resorts. The transaction separated Grupo Iberostar into three broad areas: the hotel business, the receptive or destination-services business, and the outbound travel division. Orizonia was created around the latter divisions, which included tour operators, travel agencies, airline interests, cruise operations, and other travel services. In the ownership structure agreed in 2006, The Carlyle Group acquired 55 percent, Spain’s Vista Capital acquired 36 percent, ICG Equity Fund acquired 5 percent, and ten managers collectively acquired the remaining 4 percent. The reported sale value was in excess of €800 million. Orizonia expanded through a portfolio of recognizable tourism businesses. Its holdings and associated operations included the Iberojet tour operator, the Viajes Iberia and Quo Viajes retail travel agencies, and the Orbest airline businesses. The group also held a major stake in Ibero Cruises, operated jointly with Carnival Corporation & plc. In 2007, its first complete year of trading, Orizonia reported turnover of €2.676 billion, compared with €2.402 billion in 2006, representing an 11.4 percent increase according to the cited reference material. The figures describe turnover rather than profit and should not be interpreted as a valuation or revenue forecast. The group became one of Spain’s largest tour operators and was described as the country’s third-largest tour operator. Its business model combined package-holiday production with distribution through travel agencies, airline capacity, cruise services, and other tourism channels. This vertically connected structure gave Orizonia a broad presence in the Spanish holiday market, but it also exposed the company to the financial and operational pressures associated with a large, multi-business tourism group. In February 2013, Orizonia sought protection from creditors through Spain’s pre-insolvency procedure, known as pre-concurso de acreedores, and informed employees that it was ceasing operations. The collapse affected more than 5,000 workers and left reported debts of more than €900 million to suppliers. The available reference material states that employees were dismissed without receiving outstanding settlements and salaries. Orizonia therefore ended as a major but ultimately defunct Spanish tourism group, with its principal legacy consisting of the travel brands, agencies, tour operators, airlines, and cruise interests assembled during its period of operation.

Orizonia Corporation was created in 2006 from the outbound-tourism and travel-distribution activities of Grupo Iberostar. Grupo Iberostar had developed into a diversified Spanish tourism organization whose businesses included hotels and resorts, destination or receptive services, travel agencies, tour operators, airline interests, and cruise operations. In 2006, owner Miguel Fluxà decided to retain the hotel division, Iberostar Hotels and Resorts, while selling the Grupo Receptor and Grupo Emisor divisions. The divestment attracted multiple bidders. In March 2006, Fluxà reportedly had twelve offers for the two divisions, and a transaction was confirmed in July. The Carlyle Group acquired 55 percent, Vista Capital acquired 36 percent, ICG Equity Fund acquired 5 percent, and ten managers collectively acquired 4 percent. The reported sale price exceeded €800 million. The resulting business was branded Orizonia and was based in Mallorca. Orizonia’s structure reflected an integrated tourism model rather than a single tour-operator business. Its portfolio included the Iberojet tour operator, retail agency networks such as Viajes Iberia and Quo Viajes, and airline operations associated with Orbest. The group also had cruise interests. Iberojet Cruceros was replaced by Ibero Cruises in 2007, with the latter owned jointly by Orizonia and Carnival Corporation & plc. The group’s combination of holiday production, retail distribution, aviation capacity, and cruise services made it a substantial participant in Spain’s outbound tourism market. The company’s first full year of trading was 2007. It reported turnover of €2.676 billion, compared with €2.402 billion in 2006, an increase of 11.4 percent. The available source describes Orizonia as Spain’s third-largest tour operator. These figures indicate the scale of the group’s commercial operations, although they do not establish profitability or financial health by themselves. The group’s later history ended in financial distress. In February 2013, Orizonia applied for the Spanish pre-concurso de acreedores procedure, which provides a period for a company to seek protection while addressing creditor problems before formal insolvency proceedings. At the same time, it told its workforce that it was ceasing operations. The failure reportedly affected more than 5,000 employees and left more than €900 million in debts to suppliers. The reference material further states that workers were dismissed without receiving settlements and salaries. Orizonia consequently became defunct, ending the independent operation of a major Spanish tourism group assembled through the 2006 separation from Grupo Iberostar.

• 2013

  Pre-insolvency protection and cessation of operations

  [1]Orizonia Corporationen.wikipedia.org

  Orizonia applied for pre-concurso de acreedores protection and announced that it was ceasing operations.

• 2007

  First full year of trading

  [1]Orizonia Corporationen.wikipedia.org

  Orizonia reported turnover of €2.676 billion, up from €2.402 billion in 2006, and became one of Spain’s largest tour operators.

• 2007

  Ibero Cruises replaces Iberojet Cruceros

  [1]Orizonia Corporationen.wikipedia.org

  The group’s cruise operation was reorganized under the Ibero Cruises name in a joint ownership arrangement with Carnival Corporation & plc.

• 2006

  Separation from Grupo Iberostar

  [1]Orizonia Corporationen.wikipedia.org

  Miguel Fluxà decided to retain Iberostar Hotels and Resorts while selling Grupo Iberostar’s travel-distribution and tour-operating divisions, from which Orizonia was formed.

• 2006

  Private-equity ownership transaction confirmed

  [1]Orizonia Corporationen.wikipedia.org

  The Carlyle Group took 55 percent, Vista Capital 36 percent, ICG Equity Fund 5 percent, and ten managers the remaining 4 percent. The reported transaction value exceeded €800 million.

A large, vertically integrated Spanish tourism group combining tour operating, travel-agency distribution, airline services, and cruise activities.

• Tour operator

  Iberojet

  Iberojet was Orizonia’s principal tour-operating business. It formed part of the group’s outbound-tourism portfolio and helped package and distribute holidays through Orizonia’s broader agency and travel-service network.

• Retail travel agency

  Viajes Iberia

  Viajes Iberia was a retail travel-agency network owned by Orizonia. It gave the group direct access to consumers and supported the sale of package holidays, transport, accommodation, and other travel arrangements.

• Retail travel agency

  Quo Viajes

  Quo Viajes was another travel-agency business within Orizonia’s distribution portfolio. Its role was to provide retail travel services alongside the group’s tour-operating and airline activities.

• Airline

  Orbest

  Orbest was an airline business associated with Orizonia’s holiday-travel operations. The group also operated Orbest Orizonia Airlines, giving it airline capacity connected to its tour packages and travel distribution.

• Cruise operator · 2007

  Ibero Cruises

  Ibero Cruises was the cruise business operated jointly by Orizonia and Carnival Corporation & plc. It replaced the group’s Iberojet Cruceros operation in 2007 and extended Orizonia’s activities beyond package holidays and travel agencies.

• 2013

  Collapse, unpaid employee claims, and supplier debts

  Orizonia’s 2013 collapse reportedly affected more than 5,000 workers and left over €900 million in supplier debts. The available reference material states that employees were dismissed without receiving outstanding settlements and salaries.

  Source

Read more

• 2013

  Application for pre-concurso de acreedoresOther

  Background

  Orizonia faced severe financial pressure and creditor claims.

  Action taken

  The company sought protection through Spain’s pre-insolvency procedure and communicated that it was ceasing operations.

  Aftermath

  Orizonia became defunct, with more than 5,000 workers affected and reported supplier debts exceeding €900 million.

  Reported supplier debt. More than €900 million (2013)

  Source

• 2007

  Expansion of the cruise business under Ibero CruisesStrategy

  Background

  Orizonia maintained cruise activities as part of its broader travel portfolio.

  Action taken

  Iberojet Cruceros was replaced by Ibero Cruises, operated jointly with Carnival Corporation & plc.

  Aftermath

  The reorganization broadened Orizonia’s integrated tourism offering before the group’s eventual financial collapse.

  Source

• 2006

  Divestment of Grupo Iberostar’s travel divisionsM&A

  Background

  Grupo Iberostar was divided into hotel, receptive-services, and outbound-travel activities. Miguel Fluxà chose to retain the hotel business and sell the receptive and outbound divisions.

  Action taken

  The travel-related divisions were sold to an investor consortium led by The Carlyle Group and subsequently operated as Orizonia.

  Aftermath

  The transaction created an independent, multi-business Spanish tourism group with tour operators, travel agencies, airline interests, and cruise activities.

  Reported transaction value. More than €800 million (2006)

  Source

• 2013

  Orizonia seeks protection from creditors and announces cessation of operations[1]Orizonia Corporationen.wikipedia.org

  Bankruptcy · Other

  In February 2013, the Spanish tour operator applied for pre-concurso de acreedores, a pre-insolvency protection procedure, and communicated to employees that it was ceasing operations.

• 2013

  Orizonia collapse leaves thousands of workers and large supplier debts[1]Orizonia Corporationen.wikipedia.org

  Bankruptcy · Other

  The company’s failure affected more than 5,000 workers and was associated with reported supplier debts exceeding €900 million. The reference material also reports unpaid settlements and salaries for employees.

1. 1Orizonia Corporationen.wikipedia.org