Ratepayers are still being kept in the dark about the debt owed to Albury Council by Bonza Aviation, despite the failed airline going into liquidation.
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Creditors on Tuesday, July 2, voted to place Bonza in liquidation after no investors could be found to continue the company which entered administration in April after its planes were grounded.
At that time, the council's mayor Kylie King said "we will actively engage with the administrators and are seeking legal advice in relation to the recovery of any outstanding funds owed to Albury City".
"Until such time as we have worked through this process, details of any funds owed will remain confidential," Cr King said.
Even though liquidation has begun and no substantial funds will be recovered from Bonza, the council's service leader strategy and performance Justin Finlayson declined to specify the amount owed to ratepayers.
"Any debts Albury City may be exposed to with Bonza, along with their financial arrangements, remain commercial in confidence at this time," Mr Finlayson said.
"Concessions for new routes were limited to those specified in the airport conditions of use, which are available to all airlines.
"However, at no stage was council directly involved in covering fuel costs for the airline."
Under the airport conditions, new services may be granted an introductory rebate of 100 per cent on passenger charges for the first year in which they operate and 50 per cent in the following 12 months.
Mr Finlayson repeated an observation made in a council report in May about the turnover benefits of Bonza to the airport.
"The financial performance of airport operations over the past 12 months has been significantly more positive than forecast, due to increased car parking revenue generated by Bonza services," he said.
"The additional revenue earned exceeds and will fully offset any outstanding debts unable to be recovered from Bonza."
Mr Finlayson declined to say if Albury Council had voted for liquidation at Tuesday's creditors' gathering.
"Albury City is disappointed that the administrators for Bonza were unable to find a viable option to continue its business operations," he said.
"We have been actively involved in the administration process and will continue to liaise with the liquidators as appropriate.
"It is understood the liquidators will investigate any future action and claims that are able to be pursued for the benefit of creditors."
Hall Chadwick, the company which oversaw the administration and now liquidation, stated investigations will continue into Bonza's financial affairs and findings presented to the Australian Securities and Investments Commission.
ASIC would then determine if it takes legal action for any offences uncovered such as trading while insolvent.
