Evans says the Scarlets are not seeking hand outs

The terms of the loan were deemed undeliverable and asked for securities that the region were unable to give.

The club have asked the Welsh Rugby Union for a bridging loan of up to �2m to cover a delay in the redevelopment of Stradey Park and their new stadium.

With the WRU yet to respond, the Scarlets have not ruled out making a different deal with the businessman.

"In our view the original offer was not genuine and we are suspicious of the motive behind it, we are focusing our attention on genuine, serious deals," said Scarlets chief executive Stuart Gallacher.

Scarlets chairman and benefactor Huw Evans has defended his club's right to seek a Union loan, having warned that the club could go bust by Christmas without extra funds.

We are not asking the WRU to 'bail us out', there's no way they would do this Huw Evans

Evans says that maintaining the region is vital to the game in Wales and that previous WRU help was a "commercial agreement" and not a "hand out".

"The game needs regions generating revenue at the highest level," he said.

The possibility of a Union loan has provoked widespread criticism, particularly from the valleys areas disenfranchised by the demise of the Celtic Warriors regional team.

Ospreys, Wales and ex-Warriors and Pontypridd lock Brent Cockbain has questioned why the Scarlets have received special assistance denied to other teams.

Cockbain's comments provoked a furious Scarlets reaction

Those comments prompted the Scarlets to lodge a complaint with the Welsh Rugby Players Association.

Pontypridd director Cenydd Thomas says the Scarlets have been guilty of spending money that they did not have, and that Union aid would "add insult to injury" following the way the Warriors were disbanded.

But Evans says that critics "do not have the interests of the national game at heart and probably have individual axes to grind".

"It is totally simplistic to say that it would be beneficial to go down to three regions in Wales," said Evans.

"It would create a downward spiral for the national game. The bulk of income to support the professional game comes from TV broadcast contracts plus competition revenue.

"The income that can achieved by three regions would be significantly less which will impact on players wages and the quality of players we can retain at Welsh clubs.

"We are not asking the WRU to 'bail us out', there's no way they would do this.

"We are discussing the possibility of a commercial short-term secured bridging loan that sees us through this period and will be paid back in full with interest.

The reality is that the most successful sports clubs, rugby or football, have the best stadia Huw Evans

"The real issue here is that Welsh rugby needs four centres of excellence owned by professional regions that are supported by their own income.

"With a new stadium, Llanelli Scarlets would double its revenue from �4m to �8m per annum.

"Currently the regions generate around �18m each year - with three new stadia this would rise to �32m or more.

"The knock-on effect is that more players could secure a well-paid career in the game, creating more competition for international places and making us stronger and more successful at international level.

"This route will allow the WRU to put more money into the grass roots of the game.