BDO has been called in as administrator to E Clear credit card company, after it failed to provide evidence of enough funds to pay its debts to collapsed Scottish airline firm Globespan.
The decision was made at the High Court yesterday afternoon, after E Clear failed to 'submit evidence of funds', PricewaterhouseCoopers, Globespan's administrators, said. E Clear is said to owe around £35m for credit card payments made by Globespan's customers whose flights were subsequently cancelled when the airline collapsed.
'Over the last month we have sought financial reassurance from E Clear and are disappointed that the funds are no longer there,' said Bruce Cartwright, administrator at PwC. 'We will now work closely with BDO to maximise the situation for Globespan creditors under exceptional circumstances.
'Those who bought services on credit card or visa debit, that have not been supplied, will continue to be protected by consumer card legislation and should contact their credit card issuer.'
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