Decision details

Amendments to Loan Facilities Agreements for Aequus Construction Ltd and Aequus Developments Ltd

Decision Maker: Director Finance - Section 151 Officer , Chief Executive

Decision status: Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

Following a review of the loan agreements currently in place between the Council and ACL

Decision:

That in respect of the Facilities Agreement between ACL, ADL and the Council, to
(i) Approve that the Tranche A loan availability period is extended from 15 June 2019 to 31 March 2025.
(ii) Approve that the Tranche B loan availability period is extended from 31 March 2020 to 31 March 2025.
(iii) Approve amendment to the authorised use of Tranche A loans to include “refurbishment works for the provision of housing” and to allow the conversion of Tranche A loans to Tranche B loans where they relate to such refurbishment works.
That in respect of the Development Facility Agreement between ACL, ADL and the Council, to
(iv) Approve and increase in the “Total Commitments” to £33.2 million from £20 million in line with the Council’s approved capital programme budget for Property Company Investment.
and that in respect of the approved loan in respect of the Riverside Development, to
(v) Approve the increase in the maximum loan drawdown from £9.3 million to £12 million in line with the updated business case cashflow requirements.

Alternative options considered:

The alternative option would be to not update the loan agreements, but this would leave the Council’s housing company without access to the required funding to meet its objectives as set out and agreed by the Council.

Publication date: 14/06/2019

Date of decision: 13/06/2019