New Zealand\'s Otago Rugby Union faces liquidation

The Otago Rugby Union (ORU) is set to be placed in liquidation Friday, with debts of NZ$2.35 million ($1.97 million), New Zealand Rugby Union (NZRU) chief executive Steve Tew said Tuesday. Tew said the move, which will not affect the Otago Highlanders Super 15 team, was voted on Monday night at the ORU's annual general meeting, meaning a High Court judge will decide whether to dissolve the 131-year-old body. "In the room last night at the AGM there were a lot of past presidents and life members of Otago, people who have sweated blood and tears for the union, so it's a very difficult time that we've reached," he told Radio New Zealand. "But unfortunately there's an inevitable conclusion with some of these things and we've got there with this particular union." Tew said much of the ORU's debt stemmed from operating the now defunct Carisbrook stadium in the South Island city of Dunedin. He said the union's financial woes would not impact the Highlanders, which is a separate legal entity and not liable for ORU debts. Tew ruled out an NZRU bailout for the ORU, saying the national body could not commit further funds to "an organisation that is ultimately doomed". He said the NZRU had moved to support community rugby, such as school programmes, in the Otago area but it was unclear whether the region would field a team in the ITM Cup, the national provincial competition.