Crawley Town's administrators insist claims that the club is on the brink of going out of business are premature.

Dave Woozley, the players' union representative, says Reds owner Chas Majeed told him the club was facing the threat of liquidation following a meeting with the administrators.

Woozley claims Majeed admitted to him there is little prospect the club will be able to repay debts of about £500,000 unless creditors accept "absolute peanuts" for what they are owed.

That could force the club into liquidation but accountant Rod Sadler, of insolvency firm Begbies Traynor, has reassured fans that saving Crawley is still his main priority.

A spokesperson for Begbies Traynor said: "The club is not going into liquidation at this moment in time and we are still working with the club to achieve the survival of the company.

"We have received no firm cash offers for the club so far but some parties have come forward to express an interest."

Majeed and his brother Azwar, who own the SA Group, handed over control of Crawley two weeks ago when they decided to take the club into administration due to spiralling debts.

The players have not been paid for seven weeks and are still owed bonuses from mid-January while John Duly has yet to receive a large chunk of the £600,000 he sold the club for last summer.

Sadler's responsibility is to find the best solution for all creditors - which includes players, staff and Duly. Liquidation is the last resort.

However, Woozley says the players fear the worst following his phone call from Majeed.

Woozley said: "I was surprised when he (Majeed) called. There has not been a great deal of communication with the players before but he said he wanted to explain as there are so many rumours flying around.

"He was straight forward and explained the whole situation to me. It was quite a lot to take in and my head is still spinning.

"We knew the situation was bad but I don't think people thought it would get to this dire stage.

"The club does not own the ground and there are no other assets so unless the people who are owed money agree to take absolute peanuts, then it looks like the club will go into liquidation.

"From what I have been told the administrators are yet to make an offer to creditors and there could be a chance the club will be saved if they do accept any offer but it is not looking good.

"I've passed on the news to all the players and every one of them is looking for a new club."

Majeed's warning is another blow for Reds fans who fear for the future of their club.

But Malcolm Fillmore, of Crawley-based insolvency practice Atherton Baillie, believes it could just be a ploy to force the players to leave the club.

Fillmore, who was called in as the administrator when Crawley were in financial trouble in 1999, said: "Mr Majeed may be issuing threats about liquidation but it is not up to him - it is up to the administrator and the creditors.

"Liquidation would only be a last resort if a deal could not be done with the creditors or a buyer was not found for the club so it sounds like a hollow threat."