Tewkesbury Borough Council Acts to Write Off Debt for Cleeve Hill Clubhouse

Monday, 15 July 2024, 09:35

At its upcoming meeting, Tewkesbury Borough Council is set to discuss and likely cancel a substantial debt owed by The Share Club for the Cleeve Hill Clubhouse. The Share Club, which held a 25-year lease for the clubhouse, decided to terminate the lease prematurely in 2021 due to financial challenges, leading to rent arrears with the council. Despite efforts to recover the outstanding amount, the dissolution of The Share Club Ltd in 2023 hindered the council from retrieving the debt as a non-preferential creditor.

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Summary:

At its upcoming meeting, Tewkesbury Borough Council is set to discuss and likely cancel a substantial debt owed by The Share Club for the Cleeve Hill Clubhouse.

Background:

The Share Club owed £74,166.46 to the council for the clubhouse.
The company had a held a 25-year lease for the clubhouse, which started in December 2011.
It opted to initiate a break clause to terminate the lease early in March 2021, due to financial difficulties, by which time it had already built up significant rent arrears owed to the council.

The Share Club Ltd was dissolved on March 30, 2023.
Despite the council's best efforts, this ended the opportunity to recover the rent arrears, as it wasn't a preferential creditor.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.