WIRRINA - The financial woes of the parent company that owns Wirrina Cove Resort and real estate, Equititrust Capital, have deepened with the appointment of a receiver by the Queensland Supreme Court.

Receiver David Whyte will wind up the two income funds operated by the financial services company, which has a long list of creditors including major banks.

The decision follows action taken against Equititrust by the Australian Securities and Investment Commission (ASIC) to suspend its Australian Financial Services licence because it could no longer obtain insurance for its operations.

Recognising its position the Equititrust board had already moved to wind up its funds, but the Supreme Court expedited the process by appointing the receiver after ASIC's intervention.

Properties adjoining the Wirrina Cove resort are more than three years in arrears with their council rates, owing almost half a million dollars.

The District Council of Yankalilla has delayed taking legal action to recover the outstanding rates because the resort side of the business is up for sale and, as a protected creditor, the rates, plus interest and penalties would be paid from the proceeds of the sale.

Chief Executive Roger Sweetman said he did not think that Equititrust Capital going into receivership would adversely affect the situation and it might even assist in moving things along.

"What the community needs is for Wirrina to be a vibrant property.

"The people there are working very hard to make a go of it and it will be a pity if events interstate get in their way."

Equititrust Capital inherited the rates debt when it took over ICA, the company that formerly owned the resort and real estate.

In January it offered to pay the outstanding bill, if council waived all associated interest charges, fees and penalties.

Council declined the offer, saying it would be tantamount to rewarding a poor payment record with an interest-free loan.

The property has a troubled financial history, with the previous owners only paying its outstanding rates, plus fines, interest and legal fees, a few weeks before council exercised its legal right to put it up for sale to recover the debt.