News: E-Clear enters administration

Flights > News > # 2389 (20/01/2010)

The credit card processing firm blamed for the collapse of Scottish budget operator Globespan has been placed into administration.
High court judge Mr Justice Vos made the administration order against E-Clear after hearing that there was no more than €10 million (£8.7 million) in the company’s bank accounts according to evidence submitted by its director Elias Elia yesterday. That €10 million was being held on deposit for Pago, an affiliate of Deutsche Bank, according to E-Clear. Pago is a substantial creditor of E-Clear.
The court was told that E-Clear owes collapsed airline and operator group Globespan a minimum of £22.5 million and there was little prospect of E-Clear being able to pay its debt.
BDO LLP has been appointed administrator of E-Clear and will investigate where the money owed to Globespan and the tens of millions of pounds owed to other companies are.