THE Supporters' Trust defiantly reaffirmed its commitment to saving York City today after its proposed take-over was left hanging precariously in the balance.

A crunch meeting of creditors was adjourned for the third time late yesterday afternoon after a dramatic day of tense negotiations failed to realise a deal.

In the morning, administrator Matthew Bowker was forced to adjourn the meeting for two hours after revealing the Inland Revenue and Customs and Excise had rejected the Trust's 20p in the pound offer under their proposed company voluntary arrangement.

The meeting was reconvened and then adjourned again as fraught negotiations between the Trust, the administrator and the tax authorities, who were also being put under pressure from local MPs, continued.

By 3pm it was widely believed a deal ensuring a bigger dividend for the tax men, thought to be 50p in the pound, had been struck only for it be announced an hour later that the Inland Revenue wanted more time to consider the revised proposal.

Without approval from the taxmen, the Football League will not sanction the Trust's take-over of the cash-strapped club even if the majority of creditors backed the Trust's proposed CVA.

Bowker said he was left with no choice but to postpone the meeting until next Monday so that negotiations could continue with the tax authorities.

He told waiting creditors: "I am hopeful we will be able to come back to you with some positive news this time next week.

"While it is disappointing we have not been able to conclude matters to our satisfaction it is certainly not an indication that we are in any way dead in the water.

"The matter is simply held over for a period of seven days during which time we will continue to work hard, both in terms of our team and with also the Supporters' Trust and prospective purchasers, to ensure we get the necessary response from the statutory authorities."

Significantly, Bowker said after "positive and constructive discussions" the Trust had agreed to fund the club's running costs for the next week.

Without the cash offer from the Trust it is conceivable tonight's game between City and Bristol Rovers would not be going ahead.

It is not known at this stage just how much Trust money will be needed to keep the club going for the next week, although it is estimated anywhere between £30,000 and £50,000 could be required.

Trust board member Sophie McGill, a director of the new York City company, was left shell-shocked by yesterday's developments but said the fans' group was left with no option but to step into the breach

It is the third time the Trust have come to the rescue of the stricken club with emergency funding. In recent weeks it has stumped up £92,000 and then £60,000 to safeguard the Minstermen's short-term future.

"It is an extremely disappointing situation to be in," said McGill. "It has been a long day of intense negotiations and we have yet to find a solution.

"Obviously, the club has two away games in the next seven days that have to be funded and operating costs that have to be met.

"We are totally committed to making this work and we are totally committed to our bid and are therefore prepared to fund the club for the next seven days.

"It is a deja-vu situation in that the Trust have been in this situation before.

"We have a gun to our heads but we really have no other option.

"If we don't do this the club will close and we have massive obligations to the supporters who have been so fantastic in fund raising over the last several weeks."

McGill said the Trust would be talking to the League over the next seven days to see if it would make any concession to City.

From April, a change in the law will mean the Inland Revenue will no longer have preferential creditor status when a company goes into administration. If that law applied now then yesterday's CVA would more than likely have been passed.

"We will just have to wait and see. It is going to be another long week of hard work and negotiations," said McGill.

"We just want to save York City and I am confident it will come right in the end."

Updated: 10:55 Tuesday, March 18, 2003