Creditors of the firm which ran Durham's Gala Theatre before going into liquidation last month will meet to recover their debts tomorrow.

A meeting of the 150 creditors owed money by the Entertainment Team (Durham) will take place at Durham's Ramside Hall Hotel.

Liquidator Alan Marlor, of Gateshead insolvency firm Marlor Walls, will outline the state of the company and creditors will be able to ask questions relating to its operation.

It is likely that the basis for calculating remuneration will be agreed. While Mr Marlor has refused to disclose the amount owed by the Entertainment Team, it is estimated that its debts could run to well over £100,000.

Durham City Council, to which the firm was contracted for three years to run the £14m theatre, the centrepiece of Durham's flagship Millennium City development, is seeking to recover a £75,000 interest-free loan, and may take court action if this is not repaid.

The Northern Echo, which promoted Gala, is also among the creditors. The firm's collapse came within a fortnight of the Queen's visit to the theatre as part of her jubilee tour of Durham. Durham City Council took over its running for three months, and now employs its 60 full and part time staff.