The company behind the scrapped Circuit of Wales project in Ebbw Vale, which is more than £31 million in debt, has entered into a legal agreement to save it from bankruptcy.

The Heads of the Valleys Development Company, which was behind the plans for the £425 million facility in Blaenau Gwent, has entered into a Company Voluntary Arrangement, through which an organisation works to come to agreements with its creditors around paying its debts.

The Welsh Government refused to back the Circuit for the third, and seemingly final, time in October last year over concerns about the amount of public investment which would be required – but not before handing over a £2 million grant towards the scheme and also being forced to shell out more than £7.3 million to Santander after the bank recalled a loan the developer was unable to repay.

The CVA documents show the company owes 20 separate creditors £24.06 million – meaning it has debts of £31.41 million when the £7.3 million Welsh Government loan is taken into account.

A company called Insight in Infrastructure is owed the greatest amount, at £6.7 million, while Aventa Capital Partners, which is owned by Heads of the Valleys Development Company chief executive Michael Carrick and is itself subject to a CVA with debts of £2.43 million, is owed £5.82 million.

Mr Carrick himself is owed £1.97 million, while the Heads of the Valleys Development Company pension fund is owed £1.49 million.

Meanwhile, legal firm Stephenson Harwood is owed £3.61 million and a company called called Borth Partners is owed £1.92 million.

The company also owes money to private jet provider Altitude Aviation Services, motorsport consultancy Crunch Communications, solicitors Clarke Willmott and engineering consultancy Arup, as well as £170,865.99 to HMRC.

The Argus was unable to reach Mr Carrick. The Welsh Government declined to comment.

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