On 29th October it was reported that British billionaire Pramod Mittal, the man who spent lavishly on his daughter's wedding, and subsequently declared bankrupt by London's Insolvency and Companies Court, was rescued by his son and can now apply to get his bankruptcy quashed. Pramod was declared bankrupt on the application of Moorgate Industries.
According to reports, creditors of Lakshmi Mittal's brother have approved a proposed individual voluntary arrangement (IVA), wherein he is offering to repay £4.4 million, after costs, of the £2.5 billion he owes them. The settlement is being facilitated by a contribution of £4.7mn by Pramod’s son Divyesh.
He owes 20 unsecured creditors £2,549,470,406 including over £1bn of Direct Investments in the British Virgin Islands.
The Times of India reported that he owes his creditors -- including his nephew Amit Lohia £1.7mn, son Divyesh £2.4mn, father Mohan Lal £170 mn and his wife Sangeeta over £1 mn.
The former billionaire reportedly has no personal income of his own. IVA is a legally binding agreement that constitutes a complete or partial repayment of debt to creditors. It is a formal alternative for individuals wishing to avoid bankruptcy. According to him, his wife and family are meeting these expenditures. His elder brother -- one of the world's richest man -- Lakshmi has refused to come to his aid.
Pramod said that his proposed IVA would give his creditors significantly higher returns than bankruptcy. He has promised to repay 0.19 pence to each creditor for every pound he owes them. Moorgate Industries, however, voted against the IVA in the creditors' meeting, but the majority carried out the decision.
