$1.2m debt wiped - BNZ

The Bank of New Zealand has confirmed it has wiped the $1.2 million debt owed to it by the Otago Rugby Football Union.

In return, the bank is to receive a new commercial package from the New Zealand Rugby Union, although details were yet to be finalised.

BNZ spokeswoman Erica Lloyd, of Auckland, confirmed the debt deal yesterday, one day after a rescue package that saved the ORFU from liquidation was agreed by major parties including the Dunedin City Council.

Ms Lloyd said the value and other details of the new commercial arrangement would be revealed later.

The bank had been in talks with the Otago and New Zealand unions since before Christmas, and was "pleased to have salvaged something out of the situation", she said.

"We've worked constructively with both unions in respect of the commercial arrangement we've managed to secure, that we know will assist in supporting the future for both Otago rugby and also ... New Zealand rugby.

"But what's important to us [is] this also meets the bank's requirements. In the circumstances, we see it's a good thing."

 

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