The government is due to write off more than £182,000 owed to it by airline Aer Arann, according to Chief Minister Tony Brown.
He faced questions from Onchan MHK Peter Karran about how much cash the Island stood to lose because of the company’s financial problems.
The firm went into examinership in Ireland last year – similar to Manx companies going into receivership – and restructured its debts with creditors.
Under the new deal, the government will get just 10 per cent of the total cash still outstanding.
Mr Brown told the House of Keys yesterday (Tuesday) that meant £182,149 will be written off this year.
Hospitality bosses to attend 'call to arms' meeting
Rate of inflation falls to 3.2%
Business will suffer 'significant' loss during the TT
TT merchandise provider makes upfront payment for contract
Hunt for new Steam Packet non-executives
Public disappointment after decision to sell ex-Newson's buildings
