Sheffield Wednesday have declared that placing themselves in administration "is not the answer to the club's problems".
The Owls have confirmed they have been served with a second winding-up petition by Her Majesty's Revenue and Customs in relation to an outstanding PAYE balance of £600,000. The club has been informed that the petition will be heard in the High Court on November 17.
A club statement read: "Administration is not the answer to the club's problems. The cash required to obtain control of the club at this moment would be no greater and probably less than if the club was in administration - not to mention the loss of goodwill across the board; the massive costs involved; the large write-off that would be suffered by the bank; and the mandatory 10-point deduction imposed immediately by the Football League."
The club, who have debts of over £27million, are in talks with three potential new investors, with one of them, a Norwegian oilfield company, already pledging to settle the latest tax debt.
The statement continued: "(Interim chairman) Howard Wilkinson and (chief executive) Nick Parker continue to work tirelessly to seek a positive conclusion to the financial issues at the club.
"Ongoing talks with a lead investment party and others remain extremely positive. One investment group has pledged to pay HMRC £600,000 as a token of its commitment to concluding a deal at the club and we continue to monitor that situation."
Source: PA
