The Executive Member for
Regeneration submitted a report for Executive consideration.
The purpose of the report
was to update the Executive on the process being followed by the Directors to close down the Middlesbrough Development Company. The report
also fulfilled the commitment to report on the Company’s status, in line with
the requirements of the Partly and Wholly Owned Council Companies policy and
supporting minimum standards.
In September 2023 Executive
were advised that following a decision of the Directors of the company to close down the Middlesbrough Development Company was
underway, and the process and timetable for this to happen were set out.
Although the company had ceased trading at that point, there were still three
major items identified at the time as requiring ongoing work or consideration:
Construction contract for Boho Village; Construction contract for Newbridge
Court and Newbridge Court the details of which were contained within the
report.
As the three items were
interrelated in terms of the Company’s balance sheet, they needed to be
addressed in a specific sequence to ensure the company remained solvent at the
point of closure. Without adhering to the above sequence (and transferring the asset
last) the company would be unable to demonstrate it was able to meet its
liabilities throughout the process.
Following the completion of
the three stages detailed in the report, the closure of the company was now
being progressed by FRP and would take a period of three to four months. This
allowed for the appropriate notifications to be advertised and all remaining
filings to be completed. The remaining net assets of the company would then be
distributed to the Council.
Decision type: Non-key
Decision status: Recommendations Approved
Wards affected: (All Wards);
Notice of proposed decision first published: 11/03/2024
Anticipated restriction: Public -
Decision due: 10 Apr 2024 by Executive
Lead member: 5) Executive Member for Development
Lead director: Director of Regeneration and Culture
Contact: Richard Horniman, Director of Regeneration Email: Richard_Horniman@middlesbrough.gov.uk.