Share

Otago union to settle debts

Wellington - The cash-strapped Otago Rugby Union (ORFU) will come to a settlement with all of its creditors by the end of the month and can look forward to a "brighter future", the New Zealand Rugby Union (NZRU) said on Thursday.

The ORFU faced liquidation in March because they could not service NZ$2.35 million ($1.76 million) of debt, pay players' wages and administrative staff or their bills.

Smaller creditors will receive everything they are owed, while bigger companies will get NZ$5 000 and half of what they are owed above that.

The terms of the rescue package, which included a long-term loan of NZ$500 000 from the NZRU, meant the directors had to resign and a new board has now been appointed.

"The stage is now set for the union to face the future with confidence," NZRU chief executive Steve Tew said in a news release.

"We thank all our partners who have worked hard over the last few months to ensure this 131-year-old rugby institution can survive and play its part in the Otago community."

The Dunedin-based Otago Highlanders Super Rugby team were not impacted by the crisis having being hived off from the ORFU as a separate legal entity.

The ORFU run the representative team in New Zealand's semi-professional provincial competition and community rugby.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Voting Booth
Should Siya Kolisi keep the captaincy as the Springboks build towards their World Cup title defence in 2027?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes! Siya will only be 36 at the next World Cup. He can make it!
25% - 1273 votes
No! I think the smart thing to do is start again with a younger skipper ...
29% - 1471 votes
I'd keep Siya captain for now, but look to have someone else for 2027.
45% - 2250 votes
Vote
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE