An island businessman has been made bankrupt by the high court.

Lloyds Bank International sought an order adjudicating Sam Alder bankrupt over an unpaid debt of almost £2.6m dating back to a court judgment in 2013.

In March this year, Mr Alder made an offer to pay the bank £1.35m in full and final settlement of the debt owed. That offer was rejected.

In 2013, qualified accountant Mr Alder was sued by Lloyds TSB Offshore as guarantor for funds lent to development company Slegaby Estates in 2008 for a farm conversion scheme in Onchan.

At a high court hearing in March, Mr Alder testified that assets were held in trust principally for his children and descendants.

He pointed out that £1.7m of the debt was interest and rolled up fees, and £450,000 related to Lloyds’ legal fees. He said he borrowed £4m for the contract, signed a personal guarantee to get an extra £1m and had repaid £4.5m.

High Bailiff John Needham described Mr Alder as a ’shrewd financial operator’. He accepted that being adjudicated bankrupt is a draconian sanction. But he ruled any reasonable creditor would have refused the offer and any further postponement would not be in the interests of creditors or the public.

Former Arts Council chairman Mr Alder managed T-Rex in the 1970s - and is immortalised in their hit Telegram Sam.