A former safecracker and one-time football club saviour from County Durham has begun a legal fight to prevent being declared bankrupt.

Flamboyant entrepreneur George Reynolds, ranked in a Sunday newspaper's 2000 rich list as being worth £260 million, is contesting a bankruptcy application made by the new owners of Darlington FC's stadium.

The Sterling Consortium is understood to be seeking around £4 million - the amount it loaned to complete the building work on the stadium that bears Mr Reynolds's name.

At Durham County Court legal representatives of the consortium sought to have the multi-millionaire declared bankrupt, a move which Mr Reynolds, who was not present, is ''fiercely contesting''.

The court battle comes after the consortium asked for repayment of the loan to the club, which Mr Reynolds was said to have guaranteed.

Barrister Michael James, who was representing Mr Reynolds, said after the brief hearing: ''All I can tell you is that there was an application for Mr Reynolds bankruptcy made by the Sterling Consortium.

''The application will be fiercely contested and the result of today's hearing was that the matter was adjourned to a later date, possibly to the High Court in Newcastle, and we will continue to contest the matter.''

He refused to confirm the £4 million figure but added: ''What I will say is that figure does not seem to be an exaggeration.''

Mr Reynolds, of Witton Hall, Witton-le-Wear, near Bishop Auckland, was born in Sunderland and spent half his childhood in an orphanage.

Later came a string of criminal convictions and jail sentences. On his release he moved into the kitchen worktop business and created a company that earned him millionaire status.