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London Welsh are to be taken over by new American owners, having avoided going into liquidation.

The famous old club was faced with a winding-up order from Her Majesty’s Revenue and Customs at the High Court in London this morning.

But that petition was dismissed after it emerged the debt owed to HMRC had been paid.

Now the Championship club have revealed details of the US buy-out which is set to secure their future.

In a statement issued this afternoon, they say: “London Welsh RFC is pleased to confirm reports that the petition presented to the High Court this morning to wind up the club and place it into liquidation was dismissed.

“Coupled with this, the club is also delighted to announce the recent signing of a Sale and Purchase Agreement for the acquisition of the club by a major Californian based investment group, which is only subject to formal approval by the RFU.

“The financial security which will be afforded the club as a result of this new investment will now enable it to plan for the future with confidence and renewed enthusiasm.”

Club Chairman Bleddyn Phillips added: “We are thrilled and very excited to be able to announce the arrival of a new owner which will provide the club with the financial strength to sustain its ambition to be not only a competitive rugby team playing in the top tiers of the game in the United Kingdom, but, equally importantly, to consolidate and enhance its social, community and amateur based activities at its spiritual home at Old Deer Park”.

The Exiles have faced financial problems in the past and had a spell in administration in 2009.

Fresh rumours of trouble emerged towards the end of last season and there were reports of players going without pay in the latest crisis, while Rowland Phillips has not been replaced since leaving as head coach.

However, there was talk of significant funds being expected from a new investor and that situation has now become clearer.

London Welsh are one of England’s oldest clubs, having been formed in 1885, and they famously provided seven members of the victorious 1971 British and Irish Lions tour to New Zealand.

They were an Aviva Premiership side as recently as 2015, but they failed to win a single game that season and finished bottom of the table to be relegated.

After three years based at Oxford’s Kassam Stadium, they are now back at their traditional Old Deer Park home in Richmond.

They kicked off their latest Championship campaign yesterday with a 33-32 defeat away to Rotherham and will now be able to carry on playing, with a derby clash against London Scottish coming up this Saturday.