Controversial travel tycoon, Elias Elia, owner of the credit card company blamed for the collapse of Scottish airline Flyglobespan, has been declared bankrupt.

Elia’s credit card firm E-Clear was accused of withholding £35 million from Flyglobespan and its parent company Globespan, which collapsed in December 2009.

E-Clear was forced out of business in January 2010 after Pricewaterhouse Coopers took action in the High Court in a bid to recover the money.

E-Clear’s administrators, BDO, later uncovered debts of £127 million and linked the firm to the collapse of several other airlines, including Zoom.

An investigation by the Serious Fraud Office into Elia’s affairs found “insufficient evidence to support a prosecution”.

However, the Greek Cypriot been declared bankrupt and Ian Defty, a partner at Kingston Smith & Partners, has been appointed his trustee in bankruptcy, according to the Scotsman.

It is understood that credit card companies have repaid around £15m of the £35m pursued by PwC, but Flyglobespan administrators are still searching for the remaining £20m.