SCOTLAND’S top recording studio, used by Susan Boyle and Simple Minds, is facing closure over a cash row.
Glasgow’s Terminal Music could be shut down after talks to refinance a £1.9million loan from the Royal Bank of Scotland collapsed.
The prospect has been described as “tragic” by Simple Minds singer Jim Kerr, while politicians said the bank could have done more to save Terminal’s 15 jobs.
RBS insisted it had acted “fairly and reasonably” during talks over the deal.
Record producer Stuart McCredie used the loan to set up the studio in 2005, when former First Minister Jack McConnell officially opened its doors.
Since then, artists including Kelly Clarkson, Belle and Sebastian, The Fratellis and Deacon Blue have laid down tracks with the West Regent Street studio.
Mr McCredie said his offer to pay back 90 per-cent of the loan with the rest secured against his property had been rejected by the bank.
Bail out
His initial attempts to refinance the loan and move his business to another bank in 2009 fell through.
He said: “I have acted responsibly and professionally, offering a viable refinance that banking experts have told me is more than acceptable.
“I am at a loss to understand their obstructive behaviour, especially at a time when RBS is actually meant to be supporting small businesses.
“This angers me as I cannot forget the huge role RBS played in creating the current financial crisis.
“It was bailed out by us, the taxpayer, and I wish it afforded small businesses the same support we gave it.”
Simple Minds frontmant Jim Kerr said saving the studio was “vital” in keeping Scotland on the music world’s map.
He said: “Glasgow is known worldwide as a great music city.
“For this to continue, it is vital that we have top of the range studio facilities.
“McCredie has created a perfect studio and a fine team of engineers, and it would be tragic for me and many others not to be able to work in Glasgow because of a lack of music facilities.”
Disappointing
The studio’s local MP Ann McKechin criticised RBS for its role in the studio’s plight.
The Labour member for Glasgow North said: “It claims to be the most helpful bank, but being truly helpful would mean ensuring that people were kept in jobs and businesses were kept afloat with a more constructive attitude to resolving debts.
“This is a very difficult financial climate, and McCredie has not shown any shortage of effort in trying to resolve the problem.
“It is very disappointing that the bank is prepared to pull the plug and allow a number of people in one of Scotland’s key creative industries to lose their jobs.”
A spokesperson for RBS said: “We know this is a tough time for many businesses.
“We are prevented from going into detail in this case, but we believe that the bank has acted fairly and reasonably and provided the required financial support over a number of years.”
