WARRINGTON Borough Council faces a £1.3 million-a-year bill to borrow money to fund its risky investment into Redwood Bank. In January 2017, the council agreed to pay £30 million to buy a 33 per cent share in the bank.
Redwood Financial Partners Ltd, in its accounts for the year ending December 31 2017 – signed by director Gary Wilkinson – confirmed its total equity was £9,465,469. However, it also stated its operating loss for the period ending December 31 2017 amounted to £3,556,766 – with the highest paid director of Redwood Bank Ltd earning a remuneration of £184,125.
The company has refused to confirm how many shares in total are available in Redwood Financial Partners Ltd, as well how many of the shares are yet to be allocated, but it has not ruled out whether it is just the council which has paid the rate amounting to £4.76 per share.
Furthermore, the council says it is unable to confirm how much its share in the bank is currently worth.
Warrington Borough Council has invested
£30 million in a startup bank.
- WBC put up 87.4% of the startup capital
- A group of private investors put up the other 12.6%
- WBC gets 33% shareholding
- The private investors get 67% shareholding