Scarborough Borough Council have stated that they are aware of the CVA proposals laid down by Alpamare, who operate the waterpark on Burniston Road.
The company was issued with a winding up order from British Gas Trading Ltd, which is due to be heard on Wednesday.
However, if Alpamare's CVA proposals to British Gas are accepted, this high court date will be avoided.
The news has raised questions over the future of the Burniston Road site, with the council granting a £9million loan to Benchmark Leisure Ltd towards the development of the site.
However, Cllr Helen Mallory, Scarborough Borough Council Deputy Leader, said: “Alpamare has made us aware of the CVA proposal and its plans to adapt its business operation model with the aim of increasing profitability going forward. This does not affect the council’s ongoing relationship with Benchmark or the security of the loan agreement we have with them.
“We are delighted to hear that Alpamare’s plans include the forthcoming opening of the state of the art Wellness Spa, which will attract more visitors and may well appeal to a different type of customer compared to those that have visited the waterpark to date.”
Alpamare also issued a statement on the issue, admitting that it is having to change its business model going forward.