A cash-strapped council in Surrey owed more than £13m by a private school wants "immediate discussions" with its governors after they announced a merger with another school.
Greenfield School in Woking has loans of £13,257,756 from Woking Borough Council, according to documents published to Companies House in September.
Greenfield revealed on Monday it would be merging with nearby private institution Hoe Bridge School from September 2026 – though neither gave a response when asked about plans to ensure the debt was repaid.
Deputy leader Dale Roberts said the council would pursue "all necessary steps" to secure the repayment of these loans.
"Whilst I welcome the planned merger between Greenfield and Hoe Bridge schools, we have been clear that all existing contractual obligations, including the repayment of outstanding loans to Greenfield School, must be honoured in full.
"We are seeking immediate discussions with the new organisation to set out our expectations and to protect the interests of local taxpayers."
The BBC contacted both schools to ask how the combined governing body planned to repay the debt owed by Greenfield.
A spokesperson for Hoe Bridge said: "We are glad that the council welcomes our merger announced this week.
"Not only will this bring two high-quality schools together for the benefit of families in Woking, but it will also provide long-term stability for independent education in the area and the wider local economy.
"We look forward to continuing our work with the council with these common interests in mind."
Greenfield did not respond.
It was due to repay £2.4m in November last year, but said it was not in a position to do so and instead offered a building it owned in exchange to cover the outstanding amount.
In March, the council, which has a £2bn debt, said it was taking legal advice to get its money back.
