Warrington Borough Council’s investments in Birmingham’s Mailbox could deal the debt-laden council a fresh financial blow.
The council, which has debts of £1.8bn, invested £10m to buy just under 12% of the Birmingham asset.
But that investment looks likely to be wiped out, as the Mailbox is readied for a £120m sale to pay off £108.5m of debt to Deutsche Bank.
A sale at that price would see Warrington recoup around £1.4m on its original investment.
