A public school which closed suddenly because of financial difficulties reopens today after two fathers agreed to pay a £1 million debt.

Newlands School in Seaford was forced to shut on April 3, leaving up to 450 pupils scrambling to find a new school place.

The closure came as many were preparing for GCSE and A-levels and left 200 staff at the 150-year-old school facing redundancy.

It was hoped education company Cognita would buy it out but the school's landlord, the Chittenden family, could not reach agreement with the company to reassign the lease. Legal documents later disclosed the family, which owns Newlands and its 23 acres, had entered into an agreement on the land three years ago with construction firm Allum Estates.

Today the £17,850-a-year school will reopen for students preparing to take exams in the summer after two fathers stepped in with a business plan and agreed to pay administrators Kroll to keep it going.

Brighton businessman Mike Holland, whose 15-year-old son was preparing to take his mock GCSEs, and partner John Summers, who had two children there, met parents, staff and children at a meeting on Saturday.

More than 400 people packed St Luke's Church in Walmer Road, Seaford, to hear them outline their plans for the future of the school, which include employing a new business manager.

Mr Holland, 58, said they remained in "delicate negotiations" with Kroll but assured parents there was no risk from the Chittendens or reported development plans.

He said the school would be restored, starting with the reopening of Newlands Court and Framfield for exam students today and the rest of the school next Tuesday.

Mr Holland is chairman of Cherrywood Investments, which is developing Stanmer House, Brighton, and won the Contribution To Life In Sussex award in The Argus Achievement Awards last year.

He said: "Newlands has always been a very strong entity. The revived Newlands will be stronger for this."

Headteacher Oliver Price said: "Newlands is here, Newlands is staying and Newlands has a new bright future. I am looking to make it even better."

The crowd responded with a five-minute standing ovation. Within minutes, 50 parents had registered their children for the coming term and September with more still scribbling down details until they ran out of registration forms.

Susan Southwick, whose son Christopher was in year nine, said: "We were on holiday when the news was announced so we hung out to see what would happen.

"What we have heard today has been excellent and we believe the school will go forward."

Parent Graham Fender was grateful for the efforts of those working to save Newlands but said at some point someone had to say why it was in debt in the first place.

Mr Price said: "When I arrived eight and a half years ago the school was already on unstable financial footing. It is vital to have good financial backing and management and I believe Mike and John represent that.

"They have been working with the administrators to re-establish the school in full. The priority was to get some sort of establishment up and running so those with exams would have help.

"It gives Newlands a wonderful prospect for the short, medium and long term."