Wotte was keen to bring former Saints striker Blackstock back to St Mary's on loan from QPR, but Saints were unable to find the fee required and he subsequently went to relegation rivals Nottingham Forest.
Wotte then turned to Crystal Palace striker Scowcroft, but the bank refused to fund the deal and Southampton Leisure Holdings soon went into administration.
Wotte told the Daily Echo: "I knew the first time Mark Fry came into my office with Rupert Lowe telling me the bank had bounced some cheques and stopped the overdraft we had a problem.
"We had a problem signing players. First of all we wanted to sign Dexter Blackstock but we didn't have the ridiculous money they wanted for two months - I think it was £300,000 for two months.
"We couldn't afford Dexter and I tried to sign Scowcroft. We reached an agreement with Neil Warnock and Scowcroft and the bank didn't allow us to bring him in. Then I knew we were in trouble."