DELIGHTED Octagon Theatre bosses have announced they are back in business with their own productions after a £150,000 funding package was hammered out with local firms.

The Arts Council of England has given its approval to the deal which will see the troubled theatre return to producing their own shows in the autumn.

And at a meeting tonight Octagon chairman Les Harvey will tell his fellow board members that a new resident director, Mark Babych, has been appointed to see the theatre through its first three productions of the new season.

He said: "It is not a long term appointment. We don't want to commit until we see the way things are developing."

The financial future of the theatre is now looking a lot less gloomy than in January, when it was revealed that it was £500,000 in the red.

Eighteen staff were made redundant, including artistic director Lawrence Till and a £250,000 rescue package was provided by the Arts Council, North West Arts Board, Bolton Council and the Association of Greater Manchester Authorities.

As part of a recovery plan for the theatre the number of in-house productions was slashed to a maximum of just three a year.

Fund-raising was begun by the independent Support Campaign for the Octagon Theatre, who raised £20,000 towards reducing the debt and ensuring an early return to more in-house productions. Mr Harvey told the BEN that their efforts had acted as a springboard for further support being pledged by local businesses who have asked to remain anonymous.

"We are hoping that the money will be in place fairly soon," said Mr Harvey.

The original recovery plan to rid the theatre of debt would have taken three years.

"This means, in effect we are jumping forward to year three. "People have come up trumps. It is wonderful."

In a bid to reduce the debt even faster the Octagon also plans to launch a Millennium Appeal next month.

The Octagon's repertory will now include seven in-house productions a year and before March 2000 there will be five home grown shows, starting with a production of John Godber's "Perfect Pitch" in October.

Other appointments are expected to be announced soon. Interviews have taken place for the crucial post of Executive Director which is expected to be offered to one candidate today. Three new board members are also due to be elected tonight and Mr Harvey told the BEN that there will be further moves to strengthen the board in the near future.

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