Ousted Travelzest chief executive Jonathan Carroll has launched legal action against the company.
The operator announced that Carroll had initiated litigation in Canada against the company, its directors and trading subsidiaries.
“The company believes the claims made in this action have no foundation or merit and has instructed its lawyers to contest the action,” Travelzest said.
The company said it would update the market as appropriate.
Carroll’s contract was terminated last month after former director and shareholder Mark Molyneaux called for him to stand down.
Chief financial officer Adrian Cobbold assumed day to day responsibility for running the company which has been given an extension of its credit facility by its primary lending bank until August 30.