The multi-million Yarra Valley project has failed as its lead investor Melbourne businessman Bernard Roux filed for bankruptcy.

The proposed 30 hectare Hilton resort project in the Vines luxury resort slated near Yarra Glen is now for sale. It was expected to provide an estimated 300 jobs in the area. Formerly a high-profile multi-millionaire, Roux now has only US$25 cash in a bank account, a financed Mercedes-Benz and a US$15,000 painting, on which he also owes money, based on an insolvency agreement prepared by Pitcher Partners. Moreover, Roux's creditors will be promised less than half a cent in the dollar.

The failed project has been a cause for embarrassment for Victoria Premier John Brumby's government since he wrote a letter endorsing the project to the Papau New Guinea Prime Minister saying that the project would take advantage of the anticipated economic recovery and corresponded to Victoria's tourism goals. According to The Age, Roux had direct access to Brumby as well as other high-level officials in the government.

Brumby wrote, "''I can assure you of my personal interest in this initiative and the opportunity it represents to strengthen the relationship between Papua New Guinea and the State of Victoria.''

On the letter, government spokesman Luke Enright said: ''Following the devastating Black Saturday bushfires, the government was focused on attracting new investment into the Yarra Valley.''

He added:''The Premier's letter didn't urge investment. He welcomed the interest that the PNG prime minister had shown in the project.''

The Yarra Valley is a scenic wine-growing area located near Melbourne, benefiting from its one hour proximity to the bustling Australian city.