"Labour is in emergency talks to renegotiate more than £10m of loans from wealthy businessmen to prevent itself running out of money.
Most of the millionaires who secretly lent money to Labour in the run-up to the 2005 election ought to be repaid in the coming months but the party – which is £20m in the red – is in no position to do this.
As a result, it is holding combined talks with all the lenders to find a single agreement that would allow the party to stagger repayments over up to nine years. An announcement is just weeks away, according to sources on both sides of the discussions."
Some thoughts come to mind:
Can the Labour Party meet it's debts as and when they fall due? If not, does that mean they are trading whilst insolvent?
How many times can a "loan" be rolled over before it is a donation not a loan?
The "loans" were claimed to have been made on commercial terms, have the terms been made public on any of these "loans"?
Now look out for the Labour Party suggesting that the state funding of political parties is the best solution to the "democratic deficit" in this country. They could use their large majority to get this into place before the next election and will choose to base the calculations for the funding on an average of the votes received at the last three elections so as to avoid the full impact of the coming election.
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