Cardiff City chairman Peter Ridsdale claims the imminent court case brought by one of the club's creditors could force the Bluebirds into administration.
Swiss-based finance company Langston are taking the club to the High Court next week over claims they are owed £30million.
The Bluebirds are adamant the money is not repayable until 2016, but Ridsdale has revealed he fears for the club's financial future should they lose.
"If we were to lose we would go straight into administration - it's a straightforward situation," he said.
"The club's Championship status would be determined by the amount of points we collect come the end of the season, minus ten."
However, Ridsdale is confident Cardiff will come out on top following discussions with the club's legal team.
"I met with the board and our lawyers in London on Tuesday to discuss what the state of play will be on Monday," he added.
"I'm confident and I've always been confident."