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Dateline: 4th November, 2008
Derby: New Offer to Creditors In a desperate bid to stave off liquidation, Derby Playhouse's board has made another offer to its creditors - and claims it's now able to offer them more money, even though it's not been able to find a financial saviour. The theatre has been in administration since last November. Administrators allowed it to reopen to stage The Killing of Sister George in September, but the rest of the autumn season, including the Christmas production Peter Pan, has been cancelled. Now the board is offering non-preferential creditors an increased dividend of 25p in the pound - on condition that Derby Playhouse Ltd is given another six months to pay. The board is currently waiting for a ruling on actions against both Arts Council England and Derby City Council. The Playhouse claims ACE acted beyond its powers by trying to liquidate the company while the city council prevented it from staying open. The Parliamentary Ombudsman and the Local Government Ombudsman are considering the claims which the Arts Council and the city council have strenuously denied. The Playhouse board is seeking a seven-figure compensation sum if the complaints are upheld. If the move doesn't succeed, the board will put the lease of the theatre up for sale. It has been valued professionally at between £800,000 and £1m. The city council is debating whether to put in an offer for the Playhouse assets if the company is liquidated. It would then use the building for productions under its Derby LIVE scheme which has Arts Council funding. Board chairman Professor Jonathan Powers commented, "This is what any normal commercial organisation would do. If the lease has to be sold, the city council will be entirely free to bid for it. We do not consider it would be unreasonable for the council to pay the full market price. "The board has a duty to do its best for the creditors who've lost so much. And if we got the full market value, then the company will also have enough working capital to be able to set up shop elsewhere." The board had been talking to a potential investor in Switzerland but the discussions came to nothing. The administrators, Tenon Recovery, are now expected to put the board's new offer to the creditors to see whether they want to accept. Steve Orme
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