The local authority in Port Erin has lost £1,900 in the collapse of Cherry Orchard Apartments Ltd (COA).

Several weeks ago, the complex announced COA (including Chequers bar, restaurant and function operations, holiday lets and the time share business), was insolvent and in liquidation.

However Cherry Orchard Management Ltd managing the other area of the complex - the flats - is solvent.

In total 37 creditors could be left out of pocket to the tune of £845,000. 

At a recent meeting, local authority clerk Jason Roberts told commissioners the chances of reclaiming the sum, which is for unpaid commercial waste collection charges, is ’not great â?¦ they are highly unlikely to raise the funds’.

Adrian Tinkler said the way the companies are structured protects the assets from creditors and that this is is ’unfortunate, it is not the best way for business to be run.’