Championship side Watford look set to go into administration after former chairman Jimmy Russo turned down their rescue package. Russo quit the club on Tuesday and demanded the club repaid a loan of £4.88 million which he made to the club, by Thursday.
But he, though his holding company Valley Garden Salads, has rejected Watford's plea to give them more time.
In a statement issued via his company, Russo claimed the proposal from Lord Ashcroft's company, Fordwat Limited, is not viable.
The statement read: "The rights issue proposal, while it might superficially be attractive, does not bear close examination. It gives Fordwat the opportunity to consolidate its control of the company without making an offer to other shareholders.
"In the circumstances, VGS has rejected the proposal, has announced its intention to appoint an administrator of the club and will now be serving a formal demand on Watford Leisure PLC under the terms of its guarantee for repayment of the debt owed by the club to VGS.
"VGS has been left with no alternative than to take these steps. It does so with the greatest reluctance and only after significant and repeated efforts on its part to salvage the club have been rebuffed by the board and by Fordwat."
Watford are now looking at a ten-point deduction if they are indeed placed into administration next week.