Reds stadium company goes into administration

The company behind Salford City Reds’ planned new stadium went into administration just two days after the Reds were awarded a Super League license it has emerged.nnRed City Developments, a partnership between Peel Holdings, Salford City Reds and other private companies has appointed Manchester insolvency firm Begbies Traynor. nnHowever, the club have confirmed that the stadium will still go ahead on time and will be ready for Salford to move into at the start of Super League 2010.nnIn a statement today the Salford City Reds said: “Due to the changing needs and requirements and the restructuring of the development company we at Salford City Reds look forward to the stadium being delivered to Salford and its supporters on time for 2010.nn“We look forward to working with Peel to deliver this stadium and call upon their expertise and know how to build the iconic stadium we can all be proud of.”nnAdministrator Paul Stanley said he felt the development would go ahead as planned, adding: “I will be meeting with all the stakeholders and looking for a sensible way forward to the situation.”nnSources close to Peel said the administration was the result of a technical issue, and unnamed source apparently saying: An insider said: “The development will go ahead as planned – the company is in this project for the long term. It is not a major issue.”nnThe new 22,000-seater stadium at Barton next to the M60 was a major part of the Reds’ franchise bid and without it the club may face expulsion from the top flight at the next round of applications.