York Wasps are facing make or break time in a last ditch effort to save the club.

They are to seek approval from their creditors to enter into a Company Voluntary Arrangement in a bid to rid their financial burden once and for all.

Unpayable debts meant serious consideration was given to closing the club down and re-starting as a new one.

However, former chairman John Stabler - still the club's largest single shareholder - and ex-vice chairman Russell Greenfield decided against it.

Stabler, speaking exclusively to the Evening Press, said: "The directors are taking steps to ensure that, in future, the club's income will exceed its expenditure and that the club will be operated effectively and profitably.

"Hopefully we can get everyone together to rally round and start afresh without the millstone. It's the way forward for us, providing everyone backs us."

Greenfield added: "We considered starting a new club but I think the most important people are the supporters and I think they would prefer keeping the existing club."

The club currently owes £180,000 - around £80,000 to the Inland Revenue, £46,000 to City of York Council, £14,000 to Lloyds Bank and the remainder to other creditors.

Under the terms of the CVA - if accepted by the creditors - any money the club has will be used to pay off the preferential creditors. They are the Inland Revenue (for last year's debt only) and salaried staff, which includes players, coaches and office staff. Any money left over will go to the unsecured creditors, which includes the City Council.

However, with the club's only available cash being around £50,000 in News Corporation sponsorship money, none of the creditors are likely to get all their money back and some may get nothing.

Individuals who have given personal loans to the club, including chief executive Ann Garvey and a former director, will lose their money.

Garvey expressed disappointment that some companies would lose their money but agreed it was the only forward.

She said: "I feel sorry for the players and the creditors. We have got so few creditors and it's the new ones that are suffering which is so sad."

How the cash is to be distributed will be decided by Leeds-based corporate recovery experts, Gary Blackburn and Paul Whitwam of Begbies Traymor.

A detailed account of the club's history, accounts and profits forecast will now be sent to all the creditors who will be invited to attend a meeting, which has been pencilled in for January 10.

They will be asked to vote on whether or not to accept the proposal. If 75 per cent accept then the club will enter into a CVA. If not then Greenfield warned: "The Inland Revenue will probably slap a closing down order on us."

The 75 per cent refers to the cash owed, therefore the future of the club is effectively in the hands of their two biggest creditors - the Inland Revenue and York Council.

The club has this week got the backing of the Rugby Football League to enter into a CVA.

If the plan gets the go-ahead from the creditors, it would mean players wages being re-negotiated, and last night Garvey, Greenfield and coach Lee Crooks held a meeting to inform the players of the situation.

Crooks will meet each player individually next week to discuss individual terms. However, Greenfield wants players to be paid a percentage of the gate receipts.

Wasps' next game is at home to Keighley on Sunday.

dianne.hillaby@ycp.co.uk