The council provided a loan and had outstanding invoices before the trust went into liquidation. Liquidators say it's uncertain if creditors will receive any money back.
Nottingham City Council faces the bleak prospect of losing millions of pounds invested in the Nottingham Castle Trust, which collapsed in November 2022. The Labour-run authority provided a loan of £1.859 million and had £821,000 worth of unpaid invoices outstanding before the trust went into liquidation.
With the liquidators of the trust stating that it is 'uncertain' whether creditors like Nottingham City Council will receive any money back, the council anticipates potentially writing off loans and debts totalling £2.68 million.The collapse of the Nottingham Castle Trust highlights the financial risks associated with public-private partnerships. The trust, established in 2019 to manage the castle following a £31 million refurbishment, struggled to maintain financial stability despite initial optimism. Issues such as complaints over ticket prices and the overall management of the trust contributed to its downfall. The process of liquidating the trust involves a complex investigation of its finances and the sale of assets to repay creditors. The liquidators, Interpath, have estimated that the maximum amount they can recover from the trust's assets is £404,310. However, this figure is significantly lower than the total amount owed to creditors, including Nottingham City Council and Arts Council England, who were owed £1 million. Liquidators prioritize 'preferential creditors', such as past employees and HMRC, before distributing any remaining funds to 'unsecured creditors' like the council. While the liquidators are actively pursuing avenues to maximize recovery, including a review of Gift Aid claims, the prospects of Nottingham City Council recouping its substantial investment remain uncertain
NOTTINGHAM CITY COUNCIL NOTTINGHAM CASTLE TRUST LIQUIDATION CREDITORS FINANCIAL LOSSES NOTTINGHAM CASTLE
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