Final agreement was reached this evening between the key parties - the New Zealand Rugby Union, the Dunedin City Council (DCC), Dunedin Venues Management Ltd (DVML), New Zealand Rugby Players Association (NZRPA) and the Bank of New Zealand.
The recovery package for the union includes a $500,000 loan from the NZRU, and the Dunedin City Council and Dunedin Venues Management Limited have agreed to forgive debt of $480,000
Other features of the package include:
• NZRU confirmation of All Blacks tests for Dunedin in 2013 and 2014
• A North vs South match to be played in Dunedin in June, with DVML taking all revenue from the game and covering all costs.
• DVML securing a three-year venue hire agreement with the ORFU from the ITM Cup
• DVML agreeing to manage the ORFU's commercial and sponsorship.
NZRU will enter into an additional sponsorship deal with the Bank of New Zealand.
"This is an historic day for an historic institution," said NZRU Chief Executive Steve Tew said in a statement.
"The agreement we reached tonight represents a fresh start for this 131-year old organisation which we know holds a very special place in the hearts of many in this proud rugby province."
Local businesses are being prioritised in a debt repayment plan.
Mr Tew said the current board would have to resign and new arrangements would be introduced to ensure good governance.
"We will want to have a new board in place that has the right blend of skills and experience to ensure this union never again finds itself in the predicament it currently faces," he said.
And we will be insisting on ongoing scrutiny of its business plans and accounts."
