THE i360 is unlikely to be able to pay a loan instalment due to the city council in December, according to a report.

Brighton and Hove City Council already agreed that the company could delay by six months one repayment of £570,000 which was due in June.

But now council advisers say it is likely the seafront attraction will once again be unable to fulfil its commitment due to low visitor numbers.

GVA Real Estate Finance, which is being paid £50,000 to examine the i360’s finances, said in its report: “Since opening in 2016, the visitor numbers have not been in line with forecasts and as such the revenue generated has not at all times been sufficient to meet the semi-annual loan repayments to the council.

“Based on the summer trading figures it is unlikely the i360 consortium will be able to meet their full loan obligations in December 2018.”

The council brokered a £36.2 million loan for the seafront viewing tower from the Public Works Loan Board.

Under the deal, the i360 must repay £1,492,000 every six months.

Of this, £922,000 goes back to the loan board, while £570,000 goes to the council in interest repayments.

But i360 bosses asked to reduce those £570,000 interest repayments to £25,000 until 2024 while they build the business.

Options for restructuring the i360’s loan are due to be discussed at a meeting of the city council’s policy, resources and growth committee on Thursday.

About 500,000 people visited the i360 in its first full year, 300,000 less than predicted.

The news comes a day after i360 executive director Steve Bax announced he was quitting his job.

He will be leaving just one day before the crunch meeting to discuss the attraction’s repayments.

Mr Bax is set to work until October 10 but will be paid until February next year.

Commenting on his shock departure, Julia Barfield, chairwoman of the i360, said: “It is with regret that the board of the Brighton i360 has accepted the resignation of Steve Bax, our executive director, who has decided to leave the company to explore other opportunities. To ensure a smooth transition of leadership, we are delighted to announce that David Sharpe, former managing director of the London Eye, has agreed to join us, initially on a part-time basis, until a successor is appointed.”

The i360 has generated £2.4 million for the council and created 116 jobs, according to the report.