Worcester's administrators Begbies Traynor have chosen former Warriors chief executive Jim O'Toole's consortium as their preferred bidders for the relegated Premiership club.

Julie Palmer, from Begbies Traynor, has spoken to BBC Hereford & Worcester.

"We have entered into an agreement with a consortium," she said.

Palmer, who has headed the Begbies Traynor team at Sixways over the past five weeks, confirmed the consortium is called Atlas Worcester Warriors Rugby Club Ltd.

"The preferred bidder arrangement gives them a period of exclusivity to deliver a final transaction to save the rugby club - and is a deal over the whole suite of the assets, effectively."

'A very sizeable deposit'

"There are key aspects of the transaction that they need to understand. The reason it has taken us a little while to get to this stage is because we've done quite a bit of work in terms of the rugby creditors in particular.

"But we felt this was the best deal overall for the creditors. The bidders had a very keen eye on what the shape of rugby was going to look like at Worcester in the future. And the other key factor was that they have committed to the transaction financially by putting a very sizeable deposit down to have preferred bidder status.

"That's very important as we've still got quite tight timelines to work with, with the RFU and Premiership Rugby, in terms of them understanding what the shape of the league will look like next season and we didn't want to waste time in discussions with someone who then didn't proceed."

The club, which had been owned by businessmen Jason Whittingham and Colin Goldring since December 2018, not only faced a winding-up petition from HM Revenue and Customs, who are owed more than£6m, but still have £15m to pay back to the government in Covid sports survival package payments, plus a long list of other creditors.

"This is a positive and major step in the process," said O'Toole and Sandford in their statement.

"As has always been, a focus remains on retaining an elite-level rugby club, based on a viable long-term strategic business model at Sixways, for the immediate benefit of the community of Worcestershire and beyond into the wider game of rugby.

"The process remains complex, needs complete confidentiality and will require our full attention until it runs its course."

They added that they will not make any further comment until the exclusive formal process concludes, while Diamond cancelled a scheduled television appearance on BT Sport after the announcement.

"There were more than two bids," added Palmer. "And I won't be pressed any further on what the exact number was."

O'Toole's time in Worcester

Former London Irish chief executive O'Toole first came to Worcester in 2015 to work for then owners Sixways Holdings Limited, under Greg Allen, who had taken over from legendary club benefactor Cecil Duckworth in 2013.

Since leaving Sixways in 2017, O'Toole has spent the past five years working as a sports consultant, with clients in the UK and overseas, still based in Worcester.

He first announced his intention to buy the troubled club back on 23 August, in the very early days of their discussions with HM Revenue & Customs over an unpaid tax bill - and he was initially hopeful of forcing through a quick deal that would have avoided the club going into administration - leading to the abandonment of their entire season.

O'Toole's first public move was 34 days before WRFC Trading Ltd, the part of Whittingham and Goldring's operation that owned the ground, was put into administration - and the club were suspended and relegated to the Championship.

It was then 10 days later when WRFC Players Ltd, through which players and staff were paid, was wound up in the Royal Courts of Justice in London - and the players and almost all backroom staff had their contracts cancelled.

While 20 players have so far moved on and found new clubs, the rest of the squad have still been allowed access to Sixways to train and keep fit over the past month.

The 20 ex-Warriors to find new clubs

BBC Hereford & Worcester sports editor Trevor Owens was talking to Julie Palmer, of Begbies Traynor - in an interview to be replayed on Monday's breakfast show.