Lawyers and accountants have until 9 November to reach agreement with the creditors under an interim order obtained under the Insolvency Act, 1986. Among the creditors are the Royal Bank of Scotland, which is trying to recover an overdraft of pounds 500,000, and ANZ Grindlays Bank, who made a loan of an undisclosed amount through the peer's classic car company, Flaglake Ltd.
Grindlays made the loan against the surety of two of Lord Beaverbrook's collection of Ferraris, and they are both in receivership. His other cars, estimated to be worth millions at their 1980s prices, but considerably less now, will form part of the settlement with the creditors.
Barclays Bank has also called in a loan after Lord Beaverbrook ran up an overdraft of pounds 150,000 last year at the bank's Pall Mall East branch in central London.
Lord Beaverbrook is not the only prominent figure to have been hit by the recession. John Bowes-Lyon, 50, a cousin of the Queen, has been declared bankrupt and had his assets taken over by the Official Receiver. He is an art dealer who became a director of Sotheby's at 29.