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The company set up to deliver a motorsport racetrack in south Wales has debts of more than £31m, it has been revealed.

Heads of the Valleys Development Company (HOTVDC) intended to build the Circuit of Wales on moorland above Ebbw Vale , Blaenau Gwent.

The project would have cost around £430m, but private investors were unwilling to put money into it unless the Welsh Government provided a loan guarantee of around £210m.

There were claims that the Circuit of Wales would create 6,000 jobs, but due diligence reports undertaken for the Welsh Government concluded the actual number would be far fewer.

Last June the Welsh Cabinet decided it was too risky to provide the requested loan guarantee.

It is understood that a number of local authorities in south-east Wales have been approached in the hope that they will provide financial backing for the Circuit of Wales.

It has not, however, been formally considered as a potential recipient of funding under the Cardiff Capital Region City Deal.

Now a document filed at Companies House has confirmed that HOTVDC has entered a Company Voluntary Arrangement (CVA) with its creditors to avoid liquidation.

The terms of the CVA do not appear on the Companies House website, but will entail an undertaking to pay off some or all of its debts over a number of years.

The total amount owed by HOTVDC is £24,064,861.22.

A list of creditors shows that a company called Insight in Infrastructure is owed the highest amount at just under £6.7m.

One of Insight in Infrastructure’s directors, Peter Thomas, is a former director of HOTVDC.

This week a proposal to strike off Insight in Infrastructure from the list of registered companies was published in the London Gazette.

Michael Carrick, the frontman of the Circuit of Wales project, owns directly, or indirectly through a company called Rassau Track and Leisure, more than 75% of the shares of HOTVDC. He is owed nearly £2m by HOTVDC.

Aventa Capital Partners, a company wholly owned by Mr Carrick, through which investment would have been channelled to the Circuit of Wales, is owed more than £5.8m.

Aventa, which itself owes more than £2.4m, is also subject to a CVA, with creditors due to be repaid in full by 2024. A report to creditors late last year suggested the racetrack was still on course to be built.

A company called Peregrine 8 Ltd, established in January 2018 with Mr Carrick’s wife Annabelle Lloyd as the holder of the sole £1 share, is owed £340,200.

The HOTVDC Pension Fund is owed nearly £1.5m.

Law firm Stephenson Harwood is owed more than £3.6m.

Another solicitors’ practice, Clarke Willmott, is owed nearly £70,000.

Altitude Aviation Services, run by former HOTVDC director Seamus Kealey, is owed £289,500.

Tim Murnane, another former HOTVDC director, is also owed £289,500, in his case personally.

Borth Partners, said to be an associated creditor of HOTVDC but without an internet presence, is owed more than £1.9m.

Shaun Meadows Consulting, run by HOTVDC’s former business development director, is owed £217,500.

Insight Wales, a public affairs company run by former Tory AM Jonathan Morgan, is owed nearly £53,000. In the run-up to the Welsh Cabinet’s decision not to provide HOTVDC with a loan guarantee, Mr Morgan was lobbying heavily for the Circuit of Wales project.

Parsons Brinckerhoff, an engineering and design firm, is owed £48,000.

London public relations firm Crunch Communications is owed more than £195,000.

The only creditor not to vote for the CVA was HMRC’s Enforcement Office, which is owed more than £170,000 in unpaid tax.

On top of the £24m included in the CVA, the Welsh Government is owed £7.35m for a bank loan guarantee that it underwrote.

A spokeswoman for the Welsh Government said: “The Welsh Government is a secured creditor of HOVDC and as such has priority for repayment ahead of the unsecured creditors included in the CVA.”

When approached for a comment, Mr Carrick said: “The CVA was approved in February. It has no implications on the Circuit of Wales project.”