BOSSES behind a company set up to handle the multimillion pound regeneration of East Lancashire have suffered a last-minute hiccup after its name was taken from under their noses.

Someone has registered a company called Pennine Lancashire Development Company Ltd (PLDC) - the exact name of the council-owned body aiming to secure £400million in government funding for the area.

Companies House records show the company director as Ahmed Khashaba, with a registered address of Hargher Street, Burnley, and just one £1 share has been issued.

The company was set up on October 22, and critics said it was “unbelievable” council chiefs had not registered the name earlier.

PLDC was being referred to in council meetings across East Lancashire more than two years ago, and internet searches for the name reveal 28,700 results.

But it has now been changed to Pennine Lancashire Developments Ltd.

Blackburn with Darwen Council leader Mike Lee, who chaired the first Pennine Lancashire meeting on Thursday, said: “It should have been registered earlier, I have to say.

“But I cannot understand why he has gone to so much trouble - I can only assume he thought he would make some money from it, but we’ll not be paying for it, that’s for sure.”

Kate Hollern, the council’s opposition leader, said: “This is absolute madness.

"Why was it not registered before? I imagine it’s already gone on things like letterheads.

“This company is already paying very high salaries to some its staff - perhaps they should just give the job to this man from Burnley.”

Pennine Lancashire is a joint project between the leaders of Blackburn with Darwen, Burnley, Pendle, Rossendale, Hyndburn and Ribble Valley councils.

The branding was the brainchild of music mogul Tony Wilson, who died in 2007.

Bosses hope by working together they will be able to rival the likes of Manchester and Liverpool and channel more government funding through the new organisation.