BusinessBusiness RecoveryPwC fights to clawback cash for FlyGlobespan

PwC fights to clawback cash for FlyGlobespan

Credit card processing company is chased by administrators to return over £30m in funds

Administrators of FlyGlobespan have taken legal action to place the Scottish
airliner’s online ticket handler into insolvency, in a bid to recover an
estimated £35m.

The largest airliner in Scotland became insolvent in December last year with
administrators PwC ordering its credit card processing company, E-clear to
release an estimated £35m in funds.

The directors of Globespan Travel, the parent company of FlyGlobespan, made a
legal bid to wind up E-clear just hours before Globespan was put into
administration. PwC has decided to continue that course of action, the
BBC reported.

Ian Oakley-Smith, joint administrator, 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 £35m 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,” he added.

A spokesman for E-Clear confirmed the legal challenge has been received, and
said: “We’re disputing the amount, and refunding the claims. And its our view
that the money is due back to the credit card holders. Our duty has been to the
customer, and it remains that way.”

The latest bid to wind the company up comes after three other airlines have
also launched legal claims chasing funds from E-clear.

SkyEurope, a Slvakian airline, is claiming £13m in ticket sales as well as Go
Travel Direct, the Canadian company, chasing £300,000.

Further reading:

Big
Four administrators track £35m for Globespan creditors

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