CREDITORS of a collapsed arts venue met yesterday to elect a liquidator to wrap up its finances.

Stockton's £9.5m Arc centre was forced to close last month after little more than two years in business.

Harvey Madden, of John B Taylor accountants, Yarm, was voted in by Arc's 233 creditors, who are owed sums of between £7,000 and £31,000.

The meeting marks the start of a process of paying off as many debts as possible.

It also enables Stockton Borough Council, the Arts Council and Northern Arts to begin talks with liquidators over the future of the building.

Mr Madden said: "It is too early to say at the moment as to what, if anything, will be paid to anyone. What this meeting means is that I am now in the position of being able to make a start progressing with claims."

Arc went into liquidation after a rescue plea for £280,000 to the National Arts Council was turned down. All future productions were cancelled, and all 50 staff sent home.

The centre fell into difficulty, even after doubling audience figures, because forecasts wanted the audience numbers tripled. High overheads and extra building costs of the venue were also blamed for the shortage of funds.

The Arts Council bailed out Arc a year after it opened, when it agreed to pay £1.2m on top of its initial grant, and creditors agreed to write off almost 90 per cent of its £2m debts.