A developer has been blocked from sending the Balmain Leagues Club into receivership until further notice.
Rozelle Village bought the club's headquarters in the inner west Sydney suburb of Rozelle to develop it into luxury apartments but the development has languished at the application stage for three years.
The NSW Supreme Court has heard that in that time the leagues club, which owes the developer nearly $8 million, has financially propped up the Wests Tigers NRL team and controversially sold off poker machines.
The leagues club had taken Rozelle Village to court to try to block the company from appointing a receiver or requiring it to pay back the millions sooner, although the firm's director Ian Wright has told reporters he had never threatened to do so.
On Friday, Justice Paul Brereton made orders blocking Rozelle Village from appointing a receiver or placing the leagues club into voluntary administration until further orders.
"We don't want to wind the club up," Mr Wright said outside court.
"These proceedings were brought against us by the club so let's just be very clear about that."
He said it was "frustrating" that the development application was still no closer to approval.
The plans were dealt a blow on Wednesday when the NSW Planning and Infrastructure department recommended the proposal be blocked in its current form.
"Without the development it seems very difficult for the Tigers to get back into their home base at Rozelle," Mr Wright said.
Friday's decision included a number of restrictions on the club that limit its ability to sell any more poker machines or any other asset worth more than $10,000.
The leagues club has been barred from financially accommodating the Wests Tigers, except to pay wages relating to its juniors offshoot, without obtaining the prior consent of the developer or providing 30 days' written notice.
The matter returns to court next Friday.
