Coventry City CEO Tim Fisher has confirmed that a legal process is being followed following the owner's non-payment of rent for the club's use of the Ricoh Arena.
SISU are understood to have withdrawn half a million pounds worth of rent money and now face legal action by the stadium owners Arena Coventry Limited.
Speaking to the CT, Mr Fisher said; "I can confirm that there is a legal process currently being followed.
"The ACL board of directors are required to follow this process to satisfy their fiduciary responsibilities and duties.
"It is absolutely correct that the ACL directors act in a fit and proper manner.
"During our on-going rent negotiations to date there have been no twists, turns or surprises.
"It has been a straightforward financial negotiation.
"The board of Coventry City has been kept fully informed by ACL of all developments - legal or otherwise - at all times.
"It is our expectation that the discussions will be concluded before the start of the season.
"Both sides are confident that we will reach an agreement on a rental structure that is fair and reasonable and reflects the interests of both Coventry City and ACL"