City to settle on bankrupt airlines’ debts

BANGOR – City councilors this week authorized staff to pursue settlements with two airlines that owe Bangor International Airport a combined $100,000 in unpaid fees.

According to documents, the city recently received settlement offers from companies that buy out liabilities stemming from companies in bankruptcy.

Delta Air Lines, which filed for bankruptcy on Sept. 14 of last year, owes the airport $90,517. The city is entertaining an offer under which it would receive 40 cents on the dollar for the unpaid debt, which “compares favorably … with the amounts received by the city in other bankruptcy actions,” according to the documents.

Northwest Airlines, which filed for bankruptcy on the same date in 2005, owes the airport $7,128. The city has received offers from two companies, one willing to give the city 42 cents on the dollar and the other for 50 cents on the dollar.

In both cases, the councilors granted Finance Director Debbie Cyr permission to accept better offers, should any come along.

Also during the meeting, councilors amended City Manager Edward Barrett’s employment contract with the city.

The amendment extends Barrett’s contract for one more year, or through Sept. 30, 2009.

It also provides for the same 2 percent cost-of-living increase the city granted in July to all other nonunionized employees and a one-step merit pay increase.

The cost-of-living increase, retroactive to July 1, brings Barrett’s annual base pay from the former $104,228 to $106,313. The merit increase, effective Oct. 1, increases the manager’s base pay to $108,986.