A Perth residential school that had debts of more than £1 million when it collapsed into liquidation has paid those in full.
Balnacraig School was a residential facility for children and young people unable to cope with mainstream education.
Its origins could be traced back to 1843 and the school cared for about 2,000 young people.
In 2019, it revealed plans to sell off its listed baronial mansion at Fairmount in Terrace in Perth.
It was hoped the sale would help the charity to better meet the changing needs of young people.
However, no buyer was forthcoming and with debts of more than £1 million, liquidators Henderson Loggie were appointed to wind up the charity. The majority of the 28 staff made redundant.
When liquidators were appointed, the school had three residents. The final one left on November 19 2021, at which point it closed its doors for the final time.
The remaining staff were also made redundant at that time.
Documents published at Companies House recently show the main school building was sold for £1.1m.
Liquidators recovered a total of £2.3m from the sale of other buildings and other asset realisations.
Once debts were paid, the liquidator had a surplus of almost £900,000.
That has been donated to the Rock Trust. The charity aims to preventing homelessness and supports vulnerable young people in Scotland.
Former chairman of the board of trustees at the school David Law said: “Our hope had been to continue as a charity for young people.
“While we were saddened by the need for liquidation, we are pleased that Shona Campbell and her team at Henderson Loggie has realised such a significant sum which will be used to continue to support young people in need.”
Six-figure donation to the Rock Trust
The six-figure donation was also welcomed by the Rock Trust chief executive Kate Polson.
She said: “Balnacraig School trustees have preserved a great legacy by ensuring that their remaining funds are invested in preventing young people becoming homeless in Perthshire and beyond.
“The Rock Trust is working in partnership with housing departments, schools and supporters to provide prevention programmes, and accessible housing with support, to young people.
“We are very grateful to the trustees. The funds have enabled us to invest in a new prevention programme. It will make a massive impact on young people and their families.”
Balnacraig School donation ‘good outcome’
Ms Campbell, meanwhile, said the donation was a “good outcome for everyone involved”.
She added: “It was a privilege to work with former trustees to implement a strategy for dispersal of funds arising from the liquidation process that is in line with its charitable purpose.
“We have realised a considerable sum in a relatively short space of time.
“It will be used to improve the lives of disadvantaged young people under the auspices of the Rock Trust.”
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