League One side Coventry City are likely to go into liquidation after a deal could not be agreed with their creditors.
The owners of the Ricoh Arena, ACL, rejected a company voluntary arrangement (CVA) which would have seen the club exit administration and set about repaying money owed.
If an agreement remains out of reach, ACL could lose out on the £590,000 owed to them by Coventry in stadium rent, while the club are likely be deducted 15 points by the Football League.
A club statement read: "It is with great regret that a proposed CVA has been rejected by ACL.
"It means CCFC Ltd is likely to be put into liquidation, which is expected to result in a points penalty for the club going into the new season.
"The football club and the Alan Higgs Centre Trust accepted the administrator's CVA but the City Council, through ACL, have chosen to reject it – leading to possible liquidation and the risk of a 15-point deduction.
"The club will hold urgent meetings with the Football League [on Friday] afternoon to go through the next steps for the football club."
Coventry went into administration in March and were deducted 10 points as a result, with the club suffering financially due to the rent on the stadium.
Despite an offer from ACL to play at the stadium rent-free for a season, Coventry rejected the proposal and have agreed a deal to play their home games at Sixfields Stadium, the home of Northampton Town.