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Administrators for Flyglobespan have initiated legal action against E-Clear, the company that was handling online ticket sales for the airline.

Published: 05 Jan 2010

Administrators for Flyglobespan have initiated legal action against E-Clear, the company that was handling online ticket sales for the airline.

According to a report filed by bbc.co.uk, PricewaterhouseCoopers (PwC), which was appointed as administrators last month, the move to put E-Clear into administration is intended to force the firm to disclose whether it has £35 million withheld from FlyGlobespan.

The credit card processing firm has been accused of plunging Edinburgh-based Flyglobespan into administration just before Christmas by withholding payments.

Ian Oakley-Smith, joint administrator at PwC, said: “In the period since we were appointed administrators of Globespan, we have repeatedly asked E-Clear to confirm the level of funds they hold which have been received from Globespan customers.”

“Globespan records indicate that some £35 million is being held, but no details to support the funds have been provided by E-Clear.”

“Before Christmas, the administrators requested the funds be placed in a joint account and this request has so far been refused.”

The Scottish finance secretary, John Swinney, said: “The fact that the administrator has taken this action suggests a lack of co-operation on the part of E-Clear. This is quite intolerable, as many people have lost their jobs or face financial hardship as a consequence of the collapse of Flyglobespan, and there are clear duties that require relevant parties to co-operate with the administrator.”

Swinney, according to a report filed by The Guardian, has called for a formal government investigation into the circumstances under which funds were withheld from Globespan.