E-Clear, which handled on-line sales for Flyglobespan, withheld 35m from the Edinburgh-based travel firm before its collapse last month.
And administrators PricewaterhouseCoopers said it was now clear the money was "no longer there".
It means that 15,000 customers who paid for flights with a non-Visa debit card are almost certain to lose their money.
'Differences' in UK healthcare regions
THERE are "striking and troubling differences" in health care between the four countries of the UK, a new report said today.
The Nuffield Trust examined health services in England, Scotland, Wales and Northern Ireland.
The Trust – an independent charity that carries out research into health services – found Scotland had the highest rate of spending on the NHS, as well as the highest rates of hospital doctors, GPs and nurses per person.
But Scotland also had the highest levels of poor health.
In contrast, the report found the NHS in England spent less, had fewer health staff per head of population, but made better use of its resources with higher activity levels.
Beaumont conquers Mount Aconcagua
ROUND-THE-WORLD cyclist Mark Beaumont is celebrating his latest achievement - conquering a 22,481ft mountain.
The 27-year-old from Edinburgh took a break from the saddle in his latest epic ride to climb Mount Aconcagua in the Andes, the highest peak in South America.
He said he felt "utterly exhausted and exhilarated" when he reached the summit.
Mr Beaumont is on a 12,500-mile journey through North and South America, following the Cordillera "spine" of mountains.