Tourist attraction restructures debt to secure its immediate future

MAGNA, the South Yorkshire science adventure centre, has come up with a formula to restructure its debt to produce a solution that will secure its immediate future.

The landmark attraction owes Rotherham Council £440,000, made up of a long-term secured loan of £190,000 and a £250,000 short-term loan which was being renewed annually.

A proposal for a structured repayment plan on the combined loans over a period of 10-15 years will go before a full council meeting on December 9.

John Silker, chief executive of Magna Trust, said: “What many people don’t realise is that, unlike many other attractions, galleries and museums, we do not receive grants which we can keep. Instead we pay back money we borrow at commercial rates of interest and we will continue to pay that money back to Rotherham Council.

“As a giant former steelworks Magna is a true cathedral to industry and an important part of the region’s industrial heritage.”

The proposal will mean no new money for Magna but other, concurrent, changes to its legal arrangements will allow the trustees more control over Magna’s affairs while potentially opening up financial opportunities.

Cllr Chris Read, leader of Rotherham Council, said: “None of us wants to see Magna close its doors. Such a closure would see as many as 80 people lose their jobs, the Council would inevitably have to write off hundreds of thousands of pounds of debt currently owed by Magna, and in all likelihood we would be left with the costs of maintaining the former industrial site. 

“But – as I have said before – neither can we afford to see more and more public money going into Magna. By working with the trustees to restructure the council’s debts and make repayment manageable, we will keep this popular visitor attraction open and maximise the opportunity for the taxpayer to see the loans returned to the Council.”