E-Clear falls into administration in legal fight

E-Clear was placed into administration today, in the latest step in a £35 million legal dispute over flight payments.

Mr Justice Vos, sitting at the High Court in London, signed an order placing E-Clear into administration and said BDO had been lined up as administrator for the business.

PricewaterhouseCoopers (PwC), administrator for Globespan, asked the court to place E-Clear into administration last week, with claims that E-Clear owes Globespan about £35 million.  The dispute arose because PwC has accused E-Clear of withholding money that E-Clear took from Globespan customers without passing it on to the airline.

Globespan collapsed just before Christmas with the loss of 650 jobs and leaving about 4,500 holidaymakers stranded abroad.

Bruce Cartwright, Globespan administrator at PwC, said: “We will now work closely with BDO to maximise the situation for Globespan creditors under exceptional circumstances."

E-Clear, run by Elias Elia, the chief executive, was not represented in court today, and Mr Elia was not present.

Posted at 06:52PM Jan 19, 2010 by Kelly Board in The Economy  |  Comments[0]