Moses Obeid's company Streetscape will avoid paying its $16.6 million debt to the City of Sydney council after Obeid-friendly creditors today voted to accept less than one cent in the dollar in full satisfaction of their debt.

"The City is disappointed that the majority of creditors owed money by Mr Obeid's company Streetscape agreed to accept an arrangement to allow the company to wipe out its debts," a spokesman for the council said.

Debt ... Moses Obeid. Credit:Kate Geraghty

Mr Obeid is the son of Labor powerbroker Eddie Obeid. The former Labor minister and his son are both set to feature in an Independent Commission Against Corruption inquiry in November.

Describing Mr Obeid's conduct as "dishonest and fraudulent", in February Justice Clifford Einstein ordered him and his company to pay the council $12,123,470 for secretly selling the council's multifunction poles overseas in breach of licensing agreements.