The cash-strapped Otago Rugby Union has negotiated a settlement with all of its creditors which it says will be in place by the end of the month.
Liquidation loomed for the Otago union in March, with debts of $2.35 million and unable to pay players' wages and administrative staff or their bills.
The terms of the rescue package, which include a long-term $500,000 from the New Zealand Rugby Union, meant the directors had to resign. A new board has now been appointed.
Newly appointed chairman Doug Harvie says creditors who're owed less than $5000 will get everything they're owed, while others will get $5000 plus half of what they're owed above that.
Dunedin City Council has written off the $480,000 it's owed.
Mr Harvie says under a reworked financial plan the union's forecasting a modest surplus for this financial year and for the following two years.
