E-Clear in Administration – Where has the money gone?

Travel NEWS: Controversial credit card payment company E-Clear was today placed in administration by order of a high court judge. Plus you have to ask, why is this man Still at liberty the chief executive Elias Elia…

Mr Justice Vos made the order after hearing that there was no more than €10 million in E-Clear’s bank accounts according to evidence submitted by its director Elias Elia yesterday. That €10m was being held on deposit for Pago, an affiliate of Deutsche Bank, according to E-Clear. Pago is a substantial creditor of E-Clear.

The court was told that E-Clear owes collapsed airline and operator group Globespan a minimum of £22.5 million and there was little prospect of E-Clear being able to pay its debt.

Mr Vos appointed BDO as administrators.

The company that administered E-Clear’s payments system was “alarmed” to discover in last-minute evidence yesterday that the controversial credit company had virtually nothing in its accounts, the High Court head today.

Pago, an affiliate of Deutsche Bank, discovered only yesterday afternoon that E-Clear had hardly any cash when its chief executive Elias Elia submitted last-minute evidence.

Richard Sheldon, QC for Pago, which is owned a “substantial amount of money” by E-Clear, told the court he supported placing E-Clear into administration.

“Pago is somewhat alarmed to find in evidence from Elias Elia that it appears to have very little money in its bank accounts and therefore supports the application,” he said.