Administrators hunt for missing £100m from E-Clear's finances

Personal assets of Elias Elia, the man behind the failed credit card company, could be frozen

Elias Elia, the man behind E-Clear, the failed credit card company that brought down Scotland's biggest airline, Globespan, is set to have his personal assets frozen as administrators to the company try to account for a hole in its finances said to be worth up to a £100m.

BDO, the accountants appointed to run the administration of E-Clear following a High Court hearing, will convene a meeting early this week of creditors and stakeholders in the company, including representatives of Globespan, Sunwing, the Serious Fraud Office (SFO) and the Civil Aviation Authority (CAA), the airline industry regulator.

The meeting is likely to see BDO ask creditors if they will fund a further investigation into the collapse of the company in order to find out where the cash has gone.

The court hearing last Tuesday revealed that E-Clear had somehow spent as much as £100m, leaving less than £100,000 in the pot. This is unlikely to be enough to pay for the cost of a detailed BDO investigation into the collapse. Globespan says it is owed as much as £35m by the failed card payment group, while Sunwing, a Canadian tour operator, is thought to be owed a similar amount. Sunwing declined to comment.

Sources close to E-Clear's administration process are said to be staggered by the complexity of the com-any's dealings. Computers and staff records are also thought to be missing.

Creditors are believed to be fearful that Mr Elia, a Greek Cypriot, could return to his native country in the coming weeks, adding to the confusion about the company's assets. BDO does not have the power to seize Mr Elia's passport.

The SFO is thought to be poised to mount a formal investigation into the goings-on at E-Clear and the collapse of Globespan.

Representatives of Globespan's administrator, PricewaterhouseCoopers, met with the SFO on Thursday, while BDO staff spoke with the SFO on Friday. The CAA has declined to make any comment on the collapse of E-Clear. Despite repeated calls, Mr Elia has also declined to comment.

PwC is expected to begin the sale of the remaining assets of Globespan, those that have been recovered, this week. A memorandum detailing what is up for auction, including properties and the airline's customer database, will be sent out to interested parties.

The Scottish executive called last week for an investigation into Globespan's collapse and E-Clear's failure.

A spokesman said: "This is a deeply worrying situation and we will continue to press the UK Government to investigate fully the circumstances behind the collapse of Globespan."