Merger saved Art College from disaster

Edinburgh College of Art was at risk of going bust before its merger with Edinburgh University, new documents have revealed.

Letters from the college's chief operating officer show that auditors said it could not continue on its own and that Lloyds bank could have demanded immediate repayment of an outstanding loan of 11.5 million.

Auditors KPMG are quoted saying the college's loan would be renegotiated as part of the merger and adding: "These matters indicate the existence of a material uncertainty that may cast a significant doubt on the college's ability to continue as a going concern."