Plymouth businessman enters into debt consolidation
Plymouth businessman enters into debt consolidation
Tuesday 15th December 2009
John Steven, who lives near Plymouth, took out an IVA as an alternative to going bankrupt - a very real possibility after he accumulated debts of more than £24 million, The Herald reports.
Mr Steven has been particularly hard hit by the recession due to his ownership of a number of hotels, restaurants and pubs across the south-west of England.
Some of his businesses have slipped into administration, while Mr Steven's development projects in Portugal are also thought to have suffered.
As part of the IVA, Mr Steven will make at least £75,000 available in order to repay his creditors, with his income between now and the end of 2012 possibly supplementing a further amount.
The businessman told the newspaper that the IVA formed part of business restructuring plans.
"I have, as one would expect, agreed a wide range of financial restructuring arrangements with our bankers, funders and investors to cope with the current reduced asset values and more subdued disposal markets," he explained.
Mr Steven also said that his 25 companies, all of which concern either property development or investment, have been badly affected the economic downturn.
An IVA is believed to have been the preferred option of creditors, one of which is a company 99 per cent owned by former BBC director-general Greg Dyke, as bankruptcy would not have been in anyone's interests.
Monthly IVA payments are determined according to a person's affordable disposable income, with the agreement having the potential to eradicate 65 per cent of an individual's total debt.
News article brought to you by Debt1 – UK debt management specialists
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