on 19 December 2009 
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EClear, the travel technology company which ran online payment processing systems for FlyGlobespan, has agreed to talk to administrators after coming under intense pressure following the Scottish airline’s collapse.
PricewaterhouseCoopers says the UK-based tech firm has “confirmed their willingness” to co-operate amid reports that FlyGlobespan was owed around £35 million.
Chief executive Elias Elia and other officials are still refusing to return media calls, but the company did finally release a statement:
“E-Clear is committed to working closely with the administrators of The Globespan Group to clarify and address the various complexities around the airline’s financial position, so that matters may be resolved as quickly as possible.”
Tnooz has learned that EClear is coming under further pressure to file its latest accounts to regulators in the UK.
Companies House confirms that EClear is currently four months late in filing its accounts for the 12-months to February 2009.
The company was also late filing its audited accounts for the previous 12-month period to February 2008 and only published the information in March 2009
A Companies House official says EClear was contacted recently to remind it of the missed deadline in August 2009. Under existing rules a company is fined for any delay in filing its accounts or dissolved for failure to disclose financial information.
EClear has grown rapidly in recent years according to reports obtained by Tnooz.
The number of employees at the company was recorded at 121 in February 2008, a jump of over 100 on 18 months before.
Figures across its balance sheet – creditors (£181 million for the group, up thirty-six-fold), debtors (£177 million for the group, up thirty-fold) and revenue (£18.5 million, up nine-fold) – have also increased dramatically over the same period.
Nevertheless, EClear was singled out by Scottish finance secretary John Swinney for criticism over the FlyGlobespan affair, saying the airline was “badly let down” by the technology firm.
Meanwhile, in a statement, PWC says:
“The administrators have also had a preliminary discussion with E-Clear who have confirmed their willingness to fully co-operate with the administrators’ investigations.
“Further discussions are planned early next week when it is expected the parties will seek to agree an estimate of the likely chargebacks for unflown bookings.”7
NB: Tour operator Allbury Travel Group went into administration yesterday. Allbury just happens to be owned by British Virgin Islands-based Allbury Ltd, controlled by one Elias Elia.
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Kevin, any idea who eclear other clients are in travel? Just wondering
Darren: We have been attempting to reach EClear for quite a few days, with no luck.
We have an idea of a few. EClear does not list clients on its website and we have so far not found any up to date lists elsewhere.
Globespan goes bust – but is owed £35million by E-clear, run by – “NB: Tour operator Allbury Travel Group went into administration yesterday. Allbury just happens to be owned by British Virgin Islands-based Allbury Ltd, controlled by one Elias Elia”
Would it not be prudent for the authorities to ask Mr Elia to surrender his passport until the true financial state of E-clear has been revealed?
TJ Sackville-West
TJ:
EClear is cooperating with PWC.
An administrator such as PWC would not have the power to order Elia to surrender his passport, only the police.
The police are not involved in this affair.
as a victim of last week’s events, having paid for my Globespan flights months ago, it frustrates me how useless financial regulation is in the UK. Misery to travellers, close down of a business, forcing hundreds on the dole, and no explaination. I suspect no rescue will be possible for the innocent workforce. D.Robb
(NB: edited for legal reasons)
Since these last comments, the Scotish First Minister has called for a full enquiry into the Globespan collapse, with particular reference to Eclear.
Not that it can ever make up for wrecked travel plans, and financial loss, but there are many customers (and former employees) who would like to know how Globespan’s management allowed the company to be run into bankruptcy in the first place.
Since then we also learnt that Mr Elias is associated with a company which has been trying to buy a share in Globespan. Which raises even more questions. And red flags.
There are many reasons why companies (like Eclear) don’t submit audited accounts on time. None of them inspire confidence.
TJ
i paid for 3 flights to tenerife next may with flyglobspan through the special needs dept.the cheque was cashed 4 days before they went bust now we learn e-clear owe them £35million.why does the reciever not freeze all there accounts to prevent any money being moved until this murky buisness is cleared up.