THE son of the Labor kingpin Eddie Obeid is poised to avoid paying a $16.6 million debt his company owes to the City of Sydney council.

Although they are owed only a fraction of his company's total debt of $17.5 million, some of Moses Obeid's company's creditors - who include family, friends and associates - will today vote to accept between less than 1¢ and 3¢ in the dollar in full settlement of the money they are owed.

Debt ... Moses Obeid. Credit:Kate Geraghty

This means that, despite being the largest creditor, the council is likely to be outvoted and then will receive as little as $150,000 in total settlement of the $16.6 million it is owed.

Mr Obeid's company Streetscape had a licence from the council to manufacture multifunction poles, which hold banners, street lights and traffic lights on the one pole.