Lloyd's has convinced the US Senate to remove a clause from its Bankruptcy Reform Bill so it can recover £60m debts from 250 US Names.

Earlier this month Lloyd's chief executive Nick Prettejohn travelled to Washington DC to attack the legislation. The Confederation of British Industry also lobbied for the clause to be dropped.

Prettejohn argued that if the bill went ahead, the US Names would be able to avoid paying their debts. Lloyd's suffered £8.1bn of debt due to asbestos claims in the 1970s and 1980s.

Adrian Beeby, media relations manager of Lloyd's, said: “We're pleased that the US Senate has removed Section 1310.

“Had it remained part of this bill, the provision would have benefited a handful of wealthy citizens at the expense of the US's international reputation.

“Our arguments against the provision have always been based on universally recognised laws and the rulings of 12 US courts. We're delighted that the Senate has listened to those arguments and voted accordingly.”