Investment group Blackstone ruled out financially backing Liverpool's current co-owner Tom Hicks. Blackstone's GSO Capital Partners had held talks with the Texan over providing the cash to allow him to pay off the £237million owed to the Royal Bank of Scotland - and that figure is likely to be significantly higher due to penalty fees - before the mid-October deadline and remain in control of the club.
According to a Sunday newspaper, Hicks was close to agreeing a £280million two-year deal which would see him buy out co-owner George Gillett and remain in charge of the club.
It is understood that Blackstone opened talks with Hicks some weeks ago but have now decided against any deal.
The latest development means it is back to square one for Hicks, who is taking the active role in seeking out refinancing the debt they took out to buy the club for £219million in 2007.
The main problem holding up a sale continues to be the value that Hicks and Gillett have put on the club.
Hicks in particular is wanting to maximise any profit and had put a price tag of £600million for a sale despite being advised that they are unlikely to get anything above £400million.