The institutional Sydney Gay and Lesbian Mardi Gras (SGLMG) may soon to be placed into voluntary administration after a mystery saviour on Wednesday night backed out after following legal advice to withdrew his pledge of a A$400,000 rescue package, according to The Australian.

Should the SGLMG be placed in voluntary administration, an administrator will be appointed to investigate its affairs to recommend to creditors whether it should come under administration according to a deed of company arrangement approved by its creditors, be wound up, or revert to normal operation by its directors.

In early June, the SGLMG board announced that they have found a benefactor who has loaned Mardi Gras A$400,000 to pay off crippling debt in return for the Mardi Gras trademark and business name, a week after the board made a public plea for help after the New South Wales state government rejected its approaches to save the annual event.

The board is now trying to find an alternative around voluntary administration.