Debt-ridden Halifax Town have been handed a lifeline after a survival plan was drawn up by their administrator.

The proposal will see creditors paid 2.5p in the pound if they agree to a Company Voluntary Arrangement (CVA) to wipe out the club's historical debts.

If the plan is agreed it would pave the way for the club, which owes in excess of �2m, to be taken over by a consortium of businessmen.

Administrator Rod Sadler warned that the likely alternative was liquidation.

606: DEBATE Hopefully we can win next 2 games we need to make sure we pick up something from tonights game to make sure we at least leapfrog Altrincham. Shaymania

He told Halifax Today: "This proposal represents an opportunity for the club to be put on a proper stable financial footing and for the creditors to finally receive a dividend from the company towards the sums that they are owed."

The consortium, led by businessmen David Bosomworth and Bobby Ham, believes the club could eventually break even.

The creditors are due to vote on the proposals on 7 May, while the football authorities will also study the proposals.

Halifax applied to go into administration in March and need a point from Saturday's game with Stevenage to avoid relegation from Blue Square Premier.