News: E-Clear owed £100 to creditors

Flights > News > # 2392 (25/01/2010)

Elias Elia, the man behind the credit card processing firm blamed for the collapse of Scottish budget operator Globespan, could have his personal assets frozen.
Administrators to E-Clear are currently trying to account for a hole in its finances said to be worth up to a £100m.
BDO, the accountants appointed to run the administration of E-Clear following a High Court hearing, will convene a meeting early this week of creditors and stakeholders in the company, including representatives of Globespan, Sunwing, the Serious Fraud Office (SFO) and the Civil Aviation Authority (CAA), the airline industry regulator.
The meeting is likely to see BDO ask creditors if they will fund a further investigation into the collapse of the company in order to find out where the cash has gone.
The court hearing last Tuesday revealed that E-Clear had somehow spent as much as £100m, leaving less than £100,000 in the pot. This is unlikely to be enough to pay for the cost of a detailed BDO investigation into the collapse. Globespan says it is owed as much as £35m by the failed card payment group, while Sunwing, a Canadian tour operator, is thought to be owed a similar amount.
Creditors are believed to be fearful that Mr Elia, a Greek Cypriot, could return to his native country in the coming weeks, adding to the confusion about the company's assets. BDO does not have the power to seize Mr Elia's passport.
The SFO is thought to be poised to mount a formal investigation into the goings-on at E-Clear and the collapse of Globespan.
Representatives of Globespan's administrator, PricewaterhouseCoopers, met with the SFO on Thursday, while BDO staff spoke with the SFO on Friday.