Sunwing to sue Deutsche Bank affiliate over E-Clear

Canadian tour operator Sunwing is to take legal action against an affiliate of Deutsche Bank in an effort to reclaim the £46.2 million it believes it is owed by credit card processing firm E-Clear, according to reports.

E-Clear was forced into administration by the courts after it was found to have witheld funds from several travel companies, including Scottish operator and airline Globespan Group.

It is thought lawyers in Germany are preparing to file a case on behalf of Sunwing against Pago, which was E-Clear’s German payments partner. They are expected to argue that Pago should have been aware that E-Clear was witholding payments.

If successful, Sunwing’s move could pave the way for similar action by PricewaterhouseCoopers, administrators for Globespan.

Markus Weber, managing director of Pago, told The Times: “I am very close to the case, but we have not yet heard from Sunwing.”

Administrators BDO are currently investigating E-Clear and have so far uncovered just £72,000. BDO is hoping to uncover further assets, including chief executive Elias Elia’s Kensington flat and luxury car collection.

It is thought the firm could be placed into liquidation within weeks.

Share article

View Comments

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.