Page last updated at 14:57 GMT, Tuesday, 12 January 2010

Globespan credit firm E-Clear given legal deadline

Globespan aircraft
More than 550 people were made redundant when Globespan collapsed

The online transactions firm being sued by administrators for failed airline Globespan has been given three days to show it can access money it withheld.

At a High Court hearing in London, E-Clear was told it had to provide evidence it had access to the £35m.

Before adjourning the case until next Tuesday, Mr Justice Floyd informed E-Clear it should not dispose of assets during that time.

An estimated 3,400 holidaymakers were left stranded when Globespan collapsed.

More than 550 people were made redundant at the company's headquarters in Edinburgh and its airliner FlyGlobespan was grounded.

Simon Mortimore QC, representing PricewaterhouseCoopers (PWC) who were appointed as administrators of Globespan on 16 December, was seeking an order against E-Clear that would put it into administration.

The judge ordered E-Clear, which has pledged not to dispose of its assets before the hearing, to provide details of those assets.

After the hearing, joint administrator Bruce Cartwright, from PWC, said: "This is exactly what we wanted.

"We believe now we're going to get some clarity. The judge fully understood the concerns we have, now they have to prove they're holding the cash."



Print Sponsor


SEE ALSO
Credit firm denies airline claims
23 Dec 09 |  Scotland
Flyglobespan passengers stranded abroad
17 Dec 09 |  Scotland
Globespan collapse inquiry call
20 Dec 09 |  Scotland
550 jobs lost at failed airline
18 Dec 09 |  Scotland

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific