RESCUE PLAN FOR SYDNEY'S MARDI GRAS PARADE.

SYDNEY, Oct 1 Asia Pulse - Sydney may still stage its Gay and Lesbian Mardi Gras next year, after creditors today accepted a deal that could prove to be the event's salvation.

At a meeting today, creditors backed a deal they hope will see debts paid up and guarantee the future of what has become one of the world's biggest street parades.

But the rescue plan will depend on strong support from fundraisers and volunteers.

The troubled event's financial crisis culminated in early August with the appointment of a voluntary administrator.

Today that administrator, Scott Pascoe, of Sims Lockwood, said the vast majority of creditors at today's meeting voted in favour of a deed of company arrangement.

That meant the creation of a new corporate entity which would buy the Mardi Gras business, including intellectual property, as a going concern.

The new entity's board would comprise two representatives from four community organisations - The Aids Council of NSW (ACON), the Sydney Pride Centre, the Gay and Lesbian Rights Lobby, and Queer Screen.