Administration looms for E-Clear as judge decides on winding-up petition

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The Independent Online

E-Clear, the credit card processing firm linked to the collapse of the airline Globespan, is thought to be close to administration this weekend with Begbies Traynor, the accountant, lined-up to handle the possible collapse.

The firm, which is alleged to owe Globespan as much as £35m, had until noon on Friday to reveal how much money it holds on behalf of the airline following a Court ruling last Tuesday.

A spokesman for E-Clear declined to reveal whether it had produced statements to the Court and Globespan's administrator, PricewaterhouseCoopers, detailing its cash position. "We have been advised not to say anything outside Court," he said.

KPMG had been lined up to handle the possible administration but was replaced due to a conflict of interest.

On Tuesday, a High Court judge will rule on a winding up petition brought by Globespan's administrators against E-Clear. It is being supported by three other creditors, who collectively claim they are owed around £700,000.