Dumfries and Galloway Council has lodged a claim to “claw back” the funding it provided to overhaul the mansion which helped to inspire JM Barrie to write Peter Pan.
The local authority is one of four secured creditors who could seek more than £3.5m between them following the closure of Moat Brae in Dumfries.
A spokesman confirmed the local authority’s legal services team had submitted a claim in respect of the funding it had provided which runs to hundreds of thousands of pounds.
Any amount it receives would come from the sale of assets – including the building itself – minus costs.
Moat Brae, where JM Barrie played as a child, was forced to close in August – about five years after opening as a children’s literature centre.
It received backing from a wide range of organisations.
A liquidators report on operators Peter Pan Moat Brae Trust (PPMBT) found four secured creditors held standard security over the property.
The BBC has contacted them all to find out whether they intend to seek to try to reclaim the sums they provided.
The council confirmed that it had already submitted a claim to liquidators.
Another secured creditor, Historic Environment Scotland (HES), said it was “saddened” by the developments.
It provided funding through grant schemes in 2012, 2013 and 2017 for work on stonework, the roof, joinery, plasterwork and heating to the sum of £500,000.
“We were not approached by the board of the trust about their recent issues, and would encourage early engagement with anyone facing similar issues,” it said.
“However, a key specification of this funding, in line with other funders of the house, in relation to it being sold, or going into liquidation, was the recovery of funds during the lifetime of the contracts.
“We are working with the other project funders as well as the liquidator and very much hope a positive solution to the situation can be found.”
‘Seek repayment’
The National Heritage Lottery Fund – a major funder of the project – said it was in contact with stakeholders and other funders but added it would “not be appropriate” to comment further.
Another grant of £688,000 was made through Creative Scotland – the final secured creditor – in 2015.
“Conditions of our funding are that we would seek repayment if the business becomes insolvent,” said a spokesperson.
Meanwhile, the council has also revealed that it does not expect any deal to buy the building to be completed quickly.
“The property is currently for sale by the liquidators, who are currently in discussion with interested parties following a closing date,” a spokesman said.
“It is understood that this process is likely to continue until the end of the calendar year.”