The Board of the Otago Rugby Football Union (ORFU) has decided to delay until next Friday the filing of an application to liquidate the union to allow more time for discussions on a possible recovery package.
The Otago union had considered going into liquidation last Friday but decided to delay until today to see if it could find a way out of its debt problem.
The union has debts of $2.35 million and is facing a loss of about $750,000 this year.
The New Zealand Rugby Union (NZRU), Dunedin City Council, Dunedin Venues Management Ltd, the New Zealand Rugby Players Association and the Bank of New Zealand have spent the past week working through the details of the recovery package.
NZRU Chief Executive Steve Tew said discussions this week had been fruitful.
"We are certainly more hopeful than two weeks ago so that is good progress.
"As we said last week the options we are looking at are very complicated, there are many moving parts and all have to come together to ensure we have a viable plan. The extra week will give all parties the time they need to make final decisions.
"While it is not appropriate to discuss the shape of any plan, what we have said all along is that any deal must be very clear on a number of counts. It must put the union on a sustainable long term financial footing and must put in place appropriate governance arrangements to ensure the mistakes of the past are not repeated."
- HERALD ONLINE/OTAGO DAILY TIMES