Sep 10
28
Cork Opera House
At our Council meeting on Monday night, City Council approved an extra €250,000 loan for the Cork Opera House as the company continues to restructure.
In May and June of this year the following facilities were approved by Council, for the Cork Opera House:
- Guarantee to a bank loan of €1.5m to facilitate restructuring of the Companies loan accounts
- An interest free loan of €1m, repayable with a period of 15 years with a moratorium on payments for the first three years.
The interest free loan of €1m was put in place to facilitate new measures necessary to put the Opera House on a better financial footing, and to provide sufficient working capital . At the time of the approval of the €1m loan facility, Council was advised that the review and restructuring of the Opera House operations was underway and moving at pace.
Over the past three months the company has undergone a major change process and has examined all aspects of the business, to develop a sustainable financial future for the Cork Opera House as a municipal threatre serving the Cork region. This strategic review has also led to the development of a prudent business plan for the next three years which includes account for the repayment of the restructured loan facilities guaranteed by Council, a significant reduction in the company’s cost base, and restructured management and staffing arrangements. Combined with a wide and varied programme, these are aimed at securing the future of the Opera House.
Following the completion of this process, Cork City Council received a request from the Company for an extension of the existing loan terms, from €1m to €1.25m required to meet exceptional one off restructuring costs, not factored into the original €1m loan facility.
Last night, after a lengthy debate Cork City Council agreed to facilitate the loan extension.
