COUNCIL bosses insist they are still hopeful a £226,000 business rates debt with the owners of Accrington's Arndale shopping centre will now be paid.

No legal representatives from Glanmore Portfolio Management or Swalows Assets attended a hearing at Preston County Court, after being served with a winding-up petition.

The Lancashire Telegraph revealed earlier this month that Hyndburn Council had lodged petitions with the county court over unresolved non-domestic rates.

The two companies, which are registered in the British Virgin Islands, trade as Arndale Centre Holdings and are ultimately responsible for the shopping centre.

District judge Michael Anson, following a briefing hearing, adjourned the case for further discussions between the parties.

He is also said to have expressed reservations over whether the court has jurisdiction over the debt, given the status of the two BVI-registered companies, which each have London offices.

The council has a consent order for the debt but questions remain over how the recovery of the money might be enforced.

Later a council spokesman said: "The council is working with the Arndale owners to resolve the amounts owed and the bankruptcy hearing has been postponed for two weeks to allow further progress to be made."

The council is also seeking to recoup court costs of £4,000 as a result of lodging the proceedings.

Opposition leader Cllr Tony Dobson said, before the hearing, that he was aware that the case had been launched after a number of other avenues had been explored.

Cllr Dobson added: “I have plenty of sympathy for the Arndale Centre management. Trading has been particularly difficult.

"But in essence the council is only an agency, which is acting as an agent, collecting business rates on behalf of the government and enforcing the policies of government."

The shopping centre itself has changed hands a number of times in recent years.

Cllr Miles Parkinson, council leader, said:"It is just about the council following the normal process with any party to resolve any outstanding debt, whoever is involved."