WATER could be sold off Cubbie Station to the Federal Government under a plan to eradicate the Cubbie Group's debt.
Voluntarily appointed administrators for the debt-ridden company, McGrathNicol, confirmed at a creditors' meeting last week that a tender had been submitted to the Federal Government's Water Buyback Scheme.
The meeting was held to consider two proposals to buy part of the large western Queensland cotton property, which has a water storage capacity that could fill Sydney Harbour.
Bahrain-based Western Gulf Advisory and Eastern Australia Agriculture are believed to have failed to finalise their offers before the creditors' meeting.
Cubbie Group chairman Keith De Lacy said earlier this month the WGA offer would be a "wonderful outcome".
Cubbie went into administration late last year with debts of $320 million.
The group is an amalgamation of several irrigated rice properties, including Cubbie Station, which cover more than 93,000ha and can store 538,000 megalitres of water.
McGrathNicol administrator John Cronin said creditors had voted for a holding deed of company arrangement that would allow negotiations with potential bidders to continue.
The Government conducted an official $100 million tender to buy water in the Lower Balonne region, which includes Cubbie Station, but an outcome has not yet been released.
