Brindabella unlikely to pay Council outstanding debt
COFFS Harbour City Council appears unlikely to collect money owing to it by Brindabella Airlines.
Placed into receivership on December 15, the company's assets are being sold off in an effort to repay creditors but it's believed it will not be enough the cover the company's current debts totalling more than $37million.
The airline is believed to owe Council more than $40,000 in airport taxes.
Brindabella employees are owed almost $3million while the Commonweath Bank is the largest creditor, owed more than $10milion.
Korda Mentha receivers believe there will not be enough assets to recoup all of the employees' lost entitlements.
Korda Mentha spokesman, Michael Smith said it is too early to know if councils will be paid
"First in the queue is the secured creditor, which is the banks," he said.
"And then if there are any funds left after the assets are sold, then they can be distributed to the unsecured creditors and the councils would fit into that category."