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Search forPlayhouse board offer £500,000 to creditors
Tuesday, November 04, 2008, 07:30
It says creditors will share £500,000 pounds if its bid for compensation from Arts Council England and Derby City Council is successful.
The board claimed the Arts Council had acted beyond its powers in February by voting to liquidate the theatre and that the city council had prevented it from staying open last November.
The allegations, which are denied, are under investigation by Government ombudsmen, who rule on complaints and can award compensation.
Board chairman Professor Jonathan Powers said the plan "hinged on the investigators' decisions" and that a combined seven-figure sum was wanted from the two authorities.
The plan also depends on whether the board is granted an extra six months to pay its creditors after failing to fulfil a previous agreement to pay them £300,000 by October 20.
Mr Powers said: "It's in the hands of the creditors as to whether they accept the deal.
"The first point is that the ombudsmen must find evidence of maladministration. If this is found I will provide a list identifying the cost of the damage that has been done."
If the complaints are unsuccessful, Mr Powers said the £500,000 would be raised by selling the Playhouse lease which is valued at "between £800,000 and £1m".
Mr Powers said: "If we don't get the compensation or a generous benefactor coming forward, we will offer up the lease. We hope we will get the money by other means, but if we don't then this is what any normal commercial organisation would do.
"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 city council is still considering putting in an offer for the assets if the Playhouse is liquidated.
The building would then come under the control of the council, which would be able to use it to stage productions under its Derby Live scheme
Derby's Tory leader Philip Hickson, one of two councillors on the Playhouse board last year, said the authority's plan seemed the only viable option.
He said: "It's a year since the theatre looked for major investment and it's clearly not forthcoming. The latest plan shows that the board are still living on a fantasy island."
An Arts Council spokeswoman said it was dedicated to helping the Playhouse continue to produce theatre.
She said: "The plan is that the Arts Council and Derby Live will provide an interim alternative if the board's bid fails.
"We absolutely deny we acted out of our remit and believe it's inappropriate for the board to make the offer it has before any decision on their claims has been made."
Administrators Tenon Recovery said the board's new offer would be put before the creditors who would vote whether to accept.
The Playhouse went into liquidation and then administration in November last year.
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