Jewish charities and individuals have lost millions of pounds as a result of a settlement on a debt owed by London Jewish businessman Moises Gertner.

The JC can reveal that Mr Gertner will settle a £600m debt owed to 31 creditors – by paying a £500,000 sum to be shared between them.

Documents seen by this paper show that Mr Gertner owed more than £547m to Icelandic bank Kaupthing and £11m to Israeli-owned CFL Finance Limited Group.

Mr Gertner, from Hendon in north-west London, also owed £200,000 to the Bay Charitable Trust, a Golders Green-based group which donates to Jewish causes; £330,000 to the Gibraltar-based Rosenberg Family Trust and £500,000 to the Investream Charitable Trust; as well as Jewish individuals in London, Jerusalem and New York.

Mr Gertner, who said he does not have the funds to pay back the full debt owed, proposed paying 0.07 pence for every pound owed to creditors in an Individual Voluntary Arrangement (IVA) to resolve the disputes.

At a meeting yesterday, around 95 per cent of creditors voted to accept the proposals put forward by Mr Gertner, who was represented by his lawyers.

With only two creditors objecting to the terms of the IVA, the proposal was pushed through.

As a result, Kaupthing, which is owed the largest debt, will receive around £400,000 for the £547m owed; and CFL, the second largest creditor, will receive just £9,500 for its debt.

David Rubin, of chartered accountant and insolvency practitioner group David Rubin & Partners, chaired the hour-and-a-half session in central London.

He confirmed that Kaupthing was among the majority of creditors that agreed to the proposal.

Mr Rubin, whose firm is holding the funds to be distributed to creditors pending further investigations, said the amount “will be spread equally with each creditor’s claim”.

He added: “The meeting went smoothly.”

Mr Gertner declined to comment.