Travel tycoon Elias Elia declared bankrupt
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.