Former Victorian Liberal leader John Pesutto will not face bankruptcy after the party agreed to provide him with a $1.55 million loan. This move comes after Pesutto was ordered to pay fellow Liberal MP Moira Deeming $2.3 million in legal costs following her successful defamation lawsuit against him.
Unable to pay the full amount, Pesutto had been seeking donations to avoid bankruptcy and the risk of being expelled from parliament. On Thursday night, the Victorian Liberal Party’s administrative committee decided to pay the $1.55 million directly to Deeming, with Pesutto agreeing to repay the party under a commercial arrangement.
This decision means Pesutto will avoid the prospect of losing his seat in Hawthorn and the subsequent need for a by-election. He had been under a tight three-week deadline to raise the funds since deeming filed bankruptcy proceedings against him on June 2.
In a letter to party members, Victorian Liberal Party President Philip Davis stated, “Moira Deeming should be paid what is owed to her, and therefore the party will contribute $1.55 million directly to Mrs. Deeming.” Davis added that Pesutto will repay this amount as a market-rate, interest-bearing loan, allowing the party to earn additional income from the arrangement
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