Playhouse building unlikely to be allowed for anything but theatre council warns
Property agent Savills is inviting expressions of interest in the theatre's lease in a bid to support the board's rescue plan.
That is based on the board securing a seven-figure sum for the building's lease, with £500,000 of that going to creditors.
To act as security against the rescue plan in case it fails, the board wants to effectively mortgage the theatre's lease.
That would involve an organisation agreeing to advance money to the board on the understanding that if it could not pay it back, the organisation would take control of the lease and could sell it on the open market, with creditors getting some of the cash.
Theatre chairman Professor Jonathan Powers said the lease was being marketed to give an idea of what it would be worth. But the city council said it had "grave concerns" that the board would end up defaulting on payments, meaning the building's lease could be sold off to be used as something other than a theatre.
It warned anyone interested in the lease that, as the planning authority, it would be concerned about losing a theatre.
Jonathan Guest, the council's director of regeneration and community, said: "The concern is, if the Playhouse fails and defaults on repayments, then the mortgagee can take over the building and attempt to sell it for uses other than as a theatre.
"A planning approval for change of use would need to be obtained. I am sure the council as local planning authority would be very concerned at the prospect of the city losing its theatre.
"Any aspiring mortgagee needs to be well aware of the prospect of such a change of use not being granted."
Mr Powers said he was obliged to do what was best for creditors and the Playhouse, a registered charity.
Administrators Tenon said they were waiting for firm proposals from both the Playhouse and council before writing to creditors and calling a meeting.
ASSET: Yesterday's Evening Telegraph report
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