Charities lose millions after businessman agrees debt deal

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.