Coventry City owners SISU have been told to pay the £1.1m they owe in back rent before Boxing Day or face the club being wound up.
Arena Coventry Limited have been forced to issue the ultimatium after the Sky Blues stopped paying their £100,000 a month rent ten months ago in a bid to force talks over a new rent deal.
A statement issued by Arena Coventry Limited reads as follows: "Following the refusal of Coventry City Football Club and its owners, Sisu, to pay outstanding rent to Arena Coventry Limited (ACL), the ACL Board has today issued a statutory demand to Coventry City Football Club (CCFC).
"The statutory demand covers the £1.1 million owed by CCFC to ACL in rent arrears of a total £1.6 million owed by the club.
This is not a course of action the ACL Board wanted to take. However, the behaviour of Sisu, the owners of CCFC has left the Board with no choice but to issue the statutory demand.
"The Board feels that all other avenues to resolve this issue have been exhausted and is astonished that the club’s owners have allowed matters to come to this sorry pass.
"Responsibility for this situation lies completely with Sisu, a Mayfair hedge fund which has let CCFC fail under its direction."
City and their owners have twenty one days in which to pay or face the prospect of being forced into financial insolvency which could see a points deduction or a winding up order made against the club, which has no assets to speak of.