A plan put forward by lawyer Llewellyn Peniston to pay back creditors he has owed for more than a decade has been agreed.

The Supreme Court approved the repayment scheme on January 5 — finally putting to bed a matter which has dogged the former United Bermuda Party Senator since 1992.

Back then, his former business partner Robert Thomson attempted to have him declared bankrupt after their glass-bottom boat business, Bermuda Vacations Ltd, collapsed.

Lawyer Mark Diel, who acts on behalf of the Official Receiver, said yesterday [NOTE]TUES[\NOTE] that a receiving order was made at the time but Mr. Peniston was never actually declared bankrupt.

He said: "He has made a proposal for a settlement with his creditors which has been accepted by his creditors."

Mr. Diel said that once the payments were completed, the threat of bankruptcy was lifted. But he added: "If he fails to make the payments one of the possibilities is that he can be adjudicated bankrupt."

Mr. Peniston, who would not be able to work as a lawyer in Bermuda if he was declared bankrupt, has proposed to pay his creditors back $100,000 per annum for three years in monthly instalments of $8,333.33.

He will then pay the outstanding balance of $597,087.36 and $100,000 costs to the Official Receiver. The total figure comes to just under $1m.

Mr. Peniston said: "I'm pleased this long outstanding matter has been settled."