The Alexandra Blossom Festival committee has confirmed it has no immediate plans to take legal action against the 2009 festival event manager, but has stopped short of ruling out the option.
The committee met for two hours last night, with the public excluded, to discuss paying festival creditors, as well as plans for this year's festival.
Festival chairwoman Clair Higginson said the committee decided against taking immediate legal action against Innerwink Management Ltd, which managed the 2009 festival.
It would be "costly and time-consuming" and there was no benefit in taking such action at this time, although it remained an option.
After last night's meeting, Ms Higginson said the committee's statement to the media was also sent to Innerwink managing director Annetta Latham.
Although she was not saying the problems with the 2009 festival should be forgotten, the budget for this year and governance and accountability procedures were in place, so it was time to move on.
Mrs Latham could not be contacted for comment last night.
Last year's festival made a loss of $73,143 and owes $80,232 to creditors.
Ms Higginson said there was no intention of having a full audit of the committee's accounts at this stage.
She would prepare a report for Central Otago District Council chief executive Phil Melhopt and ask that Vincent Community Board funds be made available to pay creditors.
A public meeting was held in Alexandra last month to gauge support for the event and the board recently agreed to pay the 2009 debts, ensuring the event would continue this year.