Bail Out Defended

Last updated : 21 January 2006 By Covsupport
Coventry City Councillor John Mutton has said that the bail-out for the late opening of the Arena is nothing more than an accountancy process.

In a letter to the CET, the former Lord Mayor and City supporter said: "When the Council made the decision to lend Coventry North Regeneration Ltd (CNR),we knew there would be interest costs to pay.

The intention was when ACL were in a position to pay back the loan, the rental agreement would cover both the capital repayment and the loan.

The delay by Laing O'Rourke in completing the construction held up the financial process and we knew we would have to cover costs of the interest of around £400,000.

The additional £1m is a time limited cash-flow assistance not to the Arena but to CNR (a company wholly owned by the Council) so that CNR can pay its dues to the Council."