NEWPORT NEWS, Va. (WVEC) -- The Peninsula Airport Commission is working to fix the People Express Loan issue.

The commission has been working with the state and TowneBank to recover millions in public money. That money was used to pay off the loan for a failed airline launch.

Tuesday's meeting worked to reach that settlement. The PAC met for about an hour, where they came to a "tolling agreement."

Both the commission and TowneBank entered into the agreement -- which became effective immediately. This is basically an extension of the commission's option to file a lawsuit if they have to.

Commission chair George Wallace says they have been unsuccessful in reaching an agreement with the bank. This tolling agreement puts them in a position where they can keep negotiating for 90 more days.

The Newport News/Williamsburg International Airport lost funding after the commission used more than $3 million in state money to guarantee a private loan for People Express Airlines, which eventually went under.