Angus Council says it has no plans to advertise South Links Holiday Park for sale.
The local authority took over the running of the Montrose park following the termination of its lease with WOW Leisure Ltd in May.
The council claimed that WOW Leisure had not met the conditions of their lease and also failed to make payments.
The nine-acre grassy site can accommodate around 160 caravans and tents and has earned a four-star rating from the Scottish Tourist Board.
An update was given to councillors in private at a full meeting of Angus Council.
After the meeting a spokesman said: “Elected members were updated on the actions undertaken by Angus Council since taking possession of the site in September.
“We have met with caravan owners and will meet with them again shortly as part of a continuing consultation process.
“They have been reassured that Angus Council is operating the park in a safe and secure manner.
“Caravan owners are also aware that, while there will be no immediate action taken, there will be some changes to ensure all legal requirements in relation to the caravan park are adhered to.
“There are no plans to advertise the caravan park for sale.”
WOW Leisure signed a lease deal back in 2009. The move sparked controversy as councillors feared the transfer of the park could lead to “ghettos” if residential units were allowed on the site, but elected members were assured the site would remain in the council’s control.
Only last year South Links Holiday Park received permission to open all year round, after previously only being allowed to open between March 1 and January 31.
Last month Bill McDonald from WOW Leisure claimed his company had been approached by the council shortly after signing the lease and told pharmaceuticals giant GlaxoSmithKline was interested in “substantial investment” at its Montrose facility.
He said the proposal would have required WOW Leisure to surrender the site and curtail its trading activities in anticipation of the investment.
Mr McDonald also claimed rent was waived during the period of discussions with GSK and the council provided WOW Leisure with an unsecured personal loan.
He said he thought agreement was reached whereby the cash would be repaid “over a reasonable period of time” but then Angus Council applied to the Court of Session to appoint an administrator to the company.
The council said no agreement was reached in respect of money outstanding and it was left “with no alternative but to pursue this present route”.