Moira Deeming offered John Pesutto a chance to avoid bankruptcy and delay payment of $2.3m in legal costs until 2027 on the condition her preselection for the next election be assured by the Liberal party.
The upper house MP commenced bankruptcy proceedings earlier this month after the former Liberal leader failed to pay the costs ordered by the federal court in May. The court found Pesutto repeatedly defamed Deeming by falsely implying she sympathised with neo-Nazis and white supremacists.