Credit card payment firm 'caused airline's fall'
By UK CreditCards.com
Credit card payment processor E-Clear faces scrutiny over the collapse of Scottish airline Flyglobespan, it has been confirmed.
The carrier was declared bust last week, leaving up to 4,500 holidaymakers with no way of returning to the UK from the 24 destinations it serves on three different continents.
However, joint administrator PricewaterhouseCoopers (PwC) has suggested that its downfall was partly caused by E-Clear stalling for months on handing over credit card payments worth £35m.
"To address concerns expressed by creditors ... administrators have requested that the funds held by E-Clear, which are estimated at £35m, be placed in a joint account immediately," PwC said in an interview with the Guardian.
In addition, PwC believes that £20m of the figure can be attributed to credit card payments from customers who have already flown with Flyglobespan.
The situation was clouded further over the weekend with the revelation that Allbury Travel, which is owned by E-Clear chief executive Elias Elia, has also been placed in administration.
Published: 30 December 2009
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