Former villa rental business Villa Parade has withdrawn its injunction against holiday rentals agency Travelopo.
The injunction was granted on May 2 this year after Travelopo contacted Villa Parade customers to warn them that their holiday bookings may not go ahead.
But Travelopo managing director Roger Fenton said although he feels the move has vindicated his company’s action, Travelopo has incurred significant legal costs fighting the injunction which it is still seeking to recover.
He said: "I am relieved that the injunction has been lifted and it is now clear to all that we were right to warn Villa Parade’s customers.
"However, this fiasco has had a terrible effect on all involved. My company has been left with significant legal costs incurred trying to defend ourselves when we were right to act as we did."
Travelopo said it felt it had to act after it was alerted by villa owners that they had not been paid by Villa Parade for over a year and in some cases Villa Parade were triple booking villas for this summer.
But Villa Parade was later granted a High Court injunction against Travelopo, ordering the company to retract the statement that the bookings were "void".
ABTA members Villa Parade and sister company Luxury Villa Escapes ceased trading on May 14.
