Coventry City could be wound up by Arena Coventry Limited if a deal is not struck between the club and ACL over the owed rent which has reached £1m today.
Arena Coventry Limited met yesterday to decide on what action they are going to take against City and Councillor John Blundell told the Coventry Telegraph's Les Reid: "The club have ignored deadlines and there would be little point giving them another deadline. At some point, things will have to come to a head. We are there or very soon there.
"Unless the football club comes to an immediate arrangement and pays part or all of what it owes, ACL will be left with no choice but to go for a winding up order.
"It wouldn't be right if ACL became insoluable and unable to pay its liabilities. All it is doing is continuing to undermine the Council's investment in ACL.
"The negotiations have already taken up so much of the Council officers time. Sisu should have come up with the goods and come to an arrangement that protect the future of the football club and ACL. It's been disappointing a resolution has not been found. We want CCFC to continue to play at the Ricoh but there has been enough shilly-shallying now."