25 May 2012

ORFU comes up with financial settlement

5:16 am on 25 May 2012

The cash-strapped Otago Rugby Football 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 was unable to pay players' wages and administrative staff or their bills.

The terms of the rescue package, which include a long-term $500,000 loan from the NZRU, meant the directors had to resign.

A new board has now been appointed.

The newly appointed chairman Doug Harvie says creditors who're owed less than $5,000 will get everything they're owed, while others will get $5,000 plus half of what they're owed above that.

Dunedin City Council has written off the $480,000 it's owed.

Harvie says under a reworked financial plan the union's forecasting a modest surplus for this financial year and for the following two years.