News: Card company denies responsibility for Globespan collapse

Flights > News > # 2380 (12/01/2010)

The company blamed for the collapse of Scottish budget operator Globespan has denied any responsibility.
Credit card processing firm E-Clear was due to appear in the High Court this morning (January 12) over an alleged £20 million it was withholding from Globespan. Thousands of holidaymakers were left stranded abroad after the when Globespan went bust last month.
E-Clear founder Elias Elia said the company kept back funds to protect it from claims by disgruntled customers applying for refunds.
“Flyglobespan are a victim of the recession,” he said. “They were forced to discount the cost of tickets to compete in a market that has been badly hit.
“We have suffered because we have lost an important client in Flyglobespan and people are painting us as a ¬reason for the airline’s collapse. Our view is we are just doing our job.”
Administrator PricewaterhouseCoopers (PwC) argues that £20 million, out of a total of £35 million held by E-Clear, was money from customers who had already taken their holiday and should have been paid back to the airline. PwC has filed a petition for the winding up of the firm.
If the order is successful, E-Clear could be put into administration immediately. However, it is thought the hearing could be adjourned as E-Clear is still negotiating with the administrator.
PwC had previously asked E-Clear to pay the money into a joint account, but the company has refused.