A DATE has been set for the transition from the county council’s troubled development company Arch to its successor, Advance Northumberland.

In June, the local authority’s cabinet approved the closure of Arch Corporate Holdings and the establishment of the replacement company, which “will not take unnecessary risks with taxpayers’ money”.

Now, a report to councillors has set out the the steps required to transfer the assets, liabilities and trading operations of Arch to Advance Northumberland, which is scheduled to take place on Tuesday, November 13.

“The steps required are complex in order to comply with current tax legislation and involve the transfer of significant sums of money that will be reimbursed by a final dividend payment,” the report explained.

The process, which the cabinet will be asked to approve on Tuesday, will see the council buy £3.3m of additional shares in Advance Northumberland, to be used to buy Arch’s subsidiary companies.

The council will also buy a further £0.9m of additional Advance shares to enable the new company to buy Arch’s trade and assets “at a nominal value”.

The £4.2m paid out will be returned to the county council via a dividend payment upon the dissolution of Arch. Advance Northumberland will be a limited company with the council as sole shareholder.