Coventry City Football Club have filed a notice of intent to go into administration unless a takeover is completed within ten days.
The Championship side are currently around £38 million in debt and face financial ruin unless a buyout is completed in the near future.
A statement from the club today dismissed this move as "merely a legal process" aimed at protecting the bank, which will also "speed up the potential takeover" that is currently on the table.
Former footballer Ray Ranson, who had an interest in taking over Manchester City before Thaksin Shinawatra stepped in, is heading up a bid involving Sisu Capital who wish to take charge at the Ricoh Arena.
The club said there is now "a ten-day window to complete the takeover talks", meaning the organisation's financial future will be decided before the busy Christmas period.
"Following recent speculation, the club can confirm can that staff and player wages have now been paid and we look forward to a successful conclusion of the takeover in the near future," the statement concluded.
Coventry have been seeking investment for several months and had five potential investors withdraw their interest in October, which forced the resignations of chairman Geoffrey Robinson and managing director Paul Fletcher.
If the Sky Blues are forced to call in the administrators then the club would be hit with an automatic ten-point penalty, putting them into the relegation zone.
They would drop from 14th position in the Championship to 22nd two places off the bottom of the division and above only Preston North End and Norwich City on goal difference.