Gateshead Thunder have formed a new company to run them after the demise of Gateshead & Newcastle Rugby Limited, but they could yet be relegated.

Thunder Rugby Limited will take over the club and will have to reapply for Rugby Football League membership after a breach of insolvency rules.

The club will also face a nine-point deduction, which would relegate them if it comes into effect this season.

The old holding company is being wound up after a shareholders dispute.

Directors Steven and Sarah Garside brought the action against the company after being unhappy with the amount of funding they were expected to produce.

606: DEBATE Have your say on Gateshead Thunder's future

Thunder chief executive Rod Findlay told the club website: "This is the first formal step in protecting Gateshead Thunder's future.

"The more the staff work on the business plan, the more convinced we are that there is a future for professional rugby league in the North East.

"We have received letters and e-mails of support from local businesses, community partners and the media. This is all great evidence to show the RFL.

"We need to place ourselves in the best position to agree contracts for 2010 as soon as the RFL have given approval for the business plan."

Findlay, commercial manager Keith Christie and director of rugby Chris Hood are the first three shareholders and directors of the new company.

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