By Howard Nurse Football Editor

Boro could be saved from folding

The Conference North strugglers have debts of �2.1m and administrators are petitioning to force the club to close.

But Scarborough chairman Ian Scobbie said: "We have finalised with a local developer the terms of an agreement to dispose of the McCain Stadium site.

"This releases funds to repay creditors and thus to secure the immediate future of the football club," he said.

"This also enables us to work closely with all relevant parties to deliver a new stadium.

"We will issue a further update on the situation at the end of next week with the hope of avoiding the wild speculation of the past few days."

Administrators Begbies Traynor said it would force the closure of the club because it was unable to meet the terms of a Company Voluntary Agreement to repay creditors.

606: DEBATE Is this the end for Scarborough or not?

That agreement has now failed so the club intend to secure a new agreement to pay off creditors, which include HSBC Bank and the Inland Revenue.

Boro's plan to build a new, smaller stadium on the outskirts of Scarborough.

Scobbie told BBC Radio York: "Once we further through the planning process further monies will be released to help us build a new stadium with the aid of grants.

"Perhaps all the publicity this week about our immediate demise has helped push us over the finishing line."

"The next challenge will for us to work with the local council to help get the developer the best deal possible for the McCain Stadium site."

The former Football League club, who played Chelsea just three seasons ago in the FA Cup fourth round, were relegated to the Conference in 1999.

They were expelled from the Conference last season after going into administration for a third time and placed in Conference North with a 10-point deduction this season.