Cabinet agrees to the release of the i360’s debt ahead of a sale
Cabinet members have agreed to release the debt owed to the council by Brighton i360 ahead of a potential sale. They have also agreed to commission an investigation into the original decision to loan public money.
Following the decision of the board of Brighton i-360 Limited to file for administration, a prospective buyer has come forward with a bid for the attraction.
The sale is a decision for the administrators, Interpath Advisory, but they must act in the best interests of creditors. As the largest creditor, the council needs to agree to release the debt owed by the Brighton i360 ahead of a potential negotiated sale.
At the January meeting, Cabinet members agreed to recommendations to release the council’s security on its £51m loan debt and rolled-up interest to the potential buyer.
While the proposals set out that the loan will not be repaid to the council, if the sale goes through, the council will potentially receive a future share of income from the attraction.
Councillor Jacob Taylor, Deputy Leader and Cabinet member for Finance and City Regeneration, said: “Sometimes we have to make the best of a bad hand that has been dealt to us.
“A new buyer coming in and taking over the attraction is the best option for the city. Restarting the attraction quickly will secure jobs, provide business rates and bring visitors to the city.
“To make sure that sale can happen, we have to take on the debt.
“If we didn’t agree to this transaction, it would leave the attraction decaying on the seafront and impacting the surrounding businesses.
“If the council agreed to step in to run the attraction, we would have to immediately spend more taxpayers’ money – and that’s not a risk I’m prepared to take.
“We now need to wipe the slate clean. The potential buyer is a superb company with a great record, and if the sale is negotiated then I wish them all the best in making it successful.”
Cabinet also agreed to commission an external independent investigation, to understand and learn from the original decision to loan public money to construct the Brighton i360.
Councillor Taylor added: “Residents will live with this for many years to come.
“Once we get through the sale, we need to investigate the decision-making process at the time of agreeing the loan. The council cannot make a mistake of this magnitude again.”
Read the Cabinet report on the decision of the future of the i360.
