DEVON County Council has lost out on more than £1m after the company it sold its stake in Exeter airport to went into liquidation.
The county council put in a claim for £1,049,000 to the liquidator managing the affairs of Regional and City Airports (RCAL) and has received £185.38
The council has described the amount as 'disappointing'.
In 2007 RCAL bought the county council's stake in the airport for £60m, taking out secured loans to finance the buy-out.
As part of the sale, there was an element of deferred consideration where under a tax deed, RCAL would pay the county council £1,049,000 five years after the sale.
In 2012, it became clear that RCAL would have difficulty paying £1.04m and the county council agreed to extend the repayment over five years.
Although RCAL paid £20,000, an interest-only payment to the council last year when the second payment was due RCAL defaulted and the council was told that RCAL was selling its stake in the airport to the Rigby Group and would thereafter be going into liquidation.
The liquidator told the county council that RCAL had debts and liabilities of more than £75m and there was no funds to give to the council.
nevertheless the county council made a claim to the liquidator and has received its final £185.38 in settlement.
A spokesman for Devon County Council said: "Clearly this is a disappointing sum, but under the circumstances this was expected.
"Despite this, it should not be overlooked that Devon County Council received £60 million for the airport.
"After debts were paid from the proceeds of sale, £48m was set aside and used to fund more than 700 projects across Devon, including Haven Banks Outdoor Education Centre and Exeter Central Library refurbishment.
"On top of this, an additional sum of £48m was raised through using the proceeds of the airport sale to lever in extra funds from external sources to further invest in projects across Devon."
