Simon Rigby is to appear in court for a bankruptcy hearing next month.
Preston City Council has confirmed it, and other creditors, may join a claim initiated by Clifton Quality Meats over outstanding debts.
Mr Rigby will attend at the county court in Preston on July 22 for a hearing – the third in a number of hearings relating to outstanding debts at Clifton Quality Meats, one of Mr Rigby’s long standing investments.
But it is expected a number of other creditors will join the claim against the businessman.
Cllr Matthew Brown, leader of Preston City Council, said: “The scheduled bankruptcy hearing has been brought to our attention.
“It has become apparent that Mr Rigby is responsible for significant debts as personal guarantor, and there is an expectation that a number of these creditors will seek to join in on this bankruptcy hearing.
“Unfortunately Preston City Council is among this number, and we are actively considering using this, or any other reasonable means to recover the money owed.
“We hope that Mr Rigby is able to settle these debts and resolution is found.”
Last week Mr Rigby said he would be seeking legal advice after the council used a special urgency decision to take back control of the Guild Hall in the early hours of Friday June 21.
Read more: Preston Guild Hall’s rebirth through to slow implosion under Simon Rigby
Speaking about next month’s court hearing, Mr Rigby said: “The hearing in July is the third in a series of hearings dealing with the settling of debts from Clifton Quality Meats Ltd that went in to Liquidation in August 2018.
“The Courts deal with a multitude of disputes. In this case it is how quickly debts need to be settled.
“Clifton Quality Meats Ltd was a long standing investment of mine and I am ensuring that all parties are dealt with fairly.”
Mr Rigby bought the Guild Hall from Preston City Council for just £1 in 2014. He claims he has lost £6million on the investment.