Coventry directors were fighting an eleventh hour battle to save the Championship club from administration, reports the Coventry Telegraph.
The club's board were locked in negotiations with the Co-op Bank at its Manchester head office, desperately trying to persuade them to accept an offer by Ray Ranson's Sisu consortium, to take the club over.
The sticking point has been that the bank - which is owed £18 million - has not been prepared to accept Sisu's offer which would guarantee paying back £10 million if City get promotion back to the Premier League.
As it stood on Wednesday night, the players, manager and staff on both the footballing and non footballing side will not be getting paid their month's wages this week unless the bank gives the go-ahead, at which point the new owners would stump up the £1 million needed to cover the wages and out-goings this month.
If that doesn't happen, the club would be trading insolvently and forced to put the club into administration.
And although it would provide a cheaper option for a consortium to come in, the knock-on effects of being deducted 10 points, which would plunge the team to the bottom of the league and straight into a relegation battle, as well as having the club run by a number crunching administrator, is clearly an unattractive prospect.