Aberdeen Exhibition and Conference Centre (AECC) has been given more time to repay a £7.5m loan as part of a new package approved by the local authority to help secure the venue's future.

The venue now has until 2017 to pay back the amount it owes to Aberdeen City Council (ACC) after officials agreed to a raft of measures, designed to ensure the centre could remain open amid concerns over its finances. Other measures agreed include the conversion of a £2m loan to preference shares, the replacement of three council board members with private sector representatives and the appointment of an independent chair.

Work will also be completed to allow AECC to move forward with plans for the development of a four-star hotel as part of the package, which is subject to the approval of the city solicitor and the city chamberlain. ACC leader John Stewart said: ""It is important that we as a council recognise the huge role that the AECC plays in the local economy and the decision today will ensure that it will continue to grow and play an ever-increasing role in the future of the city."

AECC chair Neil Fletcher added: "The plans ensure that the city continues to benefit from the AECC without the continual cost to the tax-payer."