Liberal Party’s powerful administrative committee to debate whether to help John Pesutto with his legal costs

The fight to save John Pesutto from being declared bankrupt is going down to the wire and there is one key sticking point as negotiations are thrashed out.

John Pesutto could be thrown an eleventh hour lifeline in a bid to save him from bankruptcy and avoid a costly Hawthorn by-election.

Multiple Liberal Party sources have told the Herald Sun the party’s powerful administrative committee will meet on Wednesday night to debate loaning him the shortfall of the $2.3m he owes colleague Moira Deeming.

Sources said the move would be “hugely unpopular” with the party’s member base who will soon vote for administrative committee positions.

John Pesutto owes $2.3m to colleague Moira Deeming. Picture: David Crosling

“That could be a sticking point if the committee are nervous about losing their positions, but otherwise the loan could be ticked off,” one senior source said.

It comes as a feared favourite to steal the seat of Hawthorn off the Liberal Party should Mr Pesutto be declared bankrupt, has thrown his full support behind the embattled former Opposition Leader.

Rob Baillieu, a current Boroondara City councillor and the son of former Premier Ted Baillieu, is considered a hot favourite to run as an independent in the event of a by-election.

Rob Baillieu is the son of former Premier Ted Baillieu.

Senior Liberals believe Mr Baillieu would have no problem winning the electorate his father held from 1999 until Mr Pesutto won the seat at the 2014 election.

But, while refusing to say whether he would consider a tilt at state politics, Rob Baillieu said he was backing Mr Pesutto to remain the member for Hawthorn.

“John has a wonderful young family and he doesn’t deserve to go bankrupt,” he said.

“The party should back their former leader.”

Mr Baillieu was the former volunteer manager for Dr Monique Ryan, the teal independent for the federal seat of Kooyong, and has volunteered for various other independent candidates.

Mr Baillieu was volunteer manager for Dr Monique Ryan. Picture: Facebook

He has been publicly critical of the Liberal Party, warning in 2022 it was suffering from a “lack of substantive leadership has caused the Liberal Party to lose its way”.

Mr Baillieu has also donated $500 to Mr Pesutto’s GoFundMe campaign which has so far raised almost $185,000 of a $3m target.

The Liberal Party has ripped itself in two in recent weeks amid differing views on whether or not it should help fund Mr Pesutto’s legal bill.

He is due to be issued with a bankruptcy on notice on Friday unless he clears the $2.3m costs order he owes Mrs Deeming who successfully sued him for defamation.

He would then have a further 21 days to pay the bill or face bankruptcy, which would render him ineligible to sit in parliament and trigger a by-election.

Mr Pesutto is due to be issued with a bankruptcy on notice on Friday unless he clears the $2.3m costs order. Picture: Jake Nowakowski

Opposition leader Brad Battin has come under increased pressure to intervene to save Mr Pesutto by lobbying both party bosses and key donors to dig deep to avoid a costly by-election.

Sources said it would cost up to $1m to defend the party’s hold on the seat.

A loss would rock the party’s hopes ahead of the 2026 general election, and further destabilise Mr Battin’s leadership.

He has come under increased scrutiny in recent weeks from internal critics who have privately complained about the direction of the party under his leadership.

Party room sources said destabilising forces had increased activity in recent weeks while Mr Battin was preparing to unveil his first major policy — a commitment to scrap stamp duty for first home buyers spending up to $1m.

The ongoing public battle between Mr Pesutto and Mrs Deeming has plagued the party for more than two years since it began in March 2023.

But Mr Battin insisted on Wednesday the ongoing internal, and public, feuding had not distracted the party from its focus of forming government in 2026.

“I am working towards developing policy that Victorians and the community can trust … my focus will be on, in 546 days, ensuring that we have the best opportunity to win the election.”

Originally published as Liberal Party’s powerful administrative committee to debate whether to help John Pesutto with his legal costs