Purpose

To receive an update on Greenfield
School.

Content

The Executive Resolved

That subject to receipt of
satisfactory legal advice on the proposals set out in
therecommendation including any subsidy
control implications;

(i)         
approval is granted for the
assignment of loans 1, 2 and 3 from Greenfield School to Hoe Bridge
School;

(ii)        
Loan 3 is restructured
based on an interest rate of 5.5% with capital
repayments being made as detailed in paragraph 7.6 of the
report;

(iii)      
Loans 1 and 2 remain as per the existing agreement
but following the completion of the merger between
Greenfield School and Hoe Bridge
School, the Council and Hoe Bridge School will reconsider the
structuring of the loan with a view to reaching agreement on
accelerating repayment; and

(iv)      
authority is granted to the Strategic Director of
Finance and the Director of Legal and Democratic Services,
following the receipt of satisfactory legal advice to take all
necessary steps to implement the recommendations including entering
into any agreements.

Reason:    In
November 2024, the Executive gave authority to the
Section 151 Officer and the Monitoring Officer, in consultation
with the Portfolio Holder, to restructure the Greenfield School
loans, subject to a number of conditions. The report provides an
update on what has happened since then and seeks approval from the
Executive on various matters to manage the Council’s loans to
Greenfield School in a way that best protects the public
interest.