Monday 19th of October 2009
A football club director declared bankrupt could have been saved by an individual voluntary arrangement (IVA).
Nicholas Levene’s life as a shareholder in Leyton Orient, city financier and company director appears to be over.
He was declared bankrupt in the High Court earlier this month after a petition by Israel-based Michael Dorsman.
Louise Brittain of consultancy firm Deloitte, who will oversee Mr Levene’s bankruptcy, said: "I will be investigating his financial affairs to ascertain where funds have gone, with the aim of retrieving as much capital as possible for the creditors."
An IVA could have been a more attractive last resort to Mr Levene.
One advantage of an IVA is that his high-profile financial worries could have been kept secret from the public.
He may also have been able to repay his debts at a manageable rate over a period of time, rather than suffer the imminent fire sale of his assets.
Under the terms of bankruptcy Mr Levene is now banned from running his companies or holding positions of authority - such as his role at Leyton Orient.
Again, an IVA may have been able to prevent this.
By Rachel Powell
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- Are you no longer accepted for bank loans? An IVA could help
