NSW: Sydney's Gay and Lesbian Mardi Gras faces administration

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NSW: Sydney's Gay and Lesbian Mardi Gras faces administration

SYDNEY, Aug 1 AAP - Organisers of Sydney's Gay and Lesbian Mardi Gras have 24 hoursto raise at least $200,000 or face voluntary administration, the president of the troubledevent said today.

Julie Regan said the Mardi Gras could be placed into voluntary administration aftera private backer pulled out of a deal to provide up to $400,000.

Ms Regan said organisers of the event were desperately trying to raise between $200,000and $400,000 in the next 24 hours.

"The short timeframe is limiting. We were advised of this on Tuesday afternoon," she said.

"That has given us little time to speak to people and for them to access funds.

"We are working against the clock."

Ms Regan said organisers were meeting potential backers today and would have a cleareridea of the event's future later this afternoon.

The annual bill for the Mardi Gras totalled about $450,000, organisers said.

The internationally known parade costs about $300,000, with additional costs incurredby keeping organising teams running year-round.

Most of the parade costs were met by the proceeds of two parties - the Sleaze Ball,held in September last year, and the after party following the Mardi Gras parade.

But figures were well down at the post-parade party on March 3 this year as a resultof the global tourism downturn after September 11.

Other reasons behind funding crisis are understood to include the falling sponsorshipmarket, over-extension of festival activities and rising insurance costs.

Last month the board of directors approved an arrangement to raise the money neededfor next year's event via a $250,000 bank overdraft guaranteed by event supporters anda private loan offered by one individual.

In June, officials said they expected the Mardi Gras to post a $500,000 debt, but theamount was reduced to $250,000 through fundraising.

Representatives will approach the government for help today, as they did when it firstbecame clear the event was in financial strife

AAP kn/kp/arb/las/bwl

KEYWORD: MARDI