The company with the marketing rights for the 2002 and 2006 World Cup finals has failed to postpone bankruptcy proceedings.
Swiss-based ISMM had sought the delay in a court in the Canton of Zug to allow it to complete talks with an unnamed "equity partner" to help it out of a financial crisis.
ISMM's problems arose after a period of aggressive expansion in the sports rights market and high losses in parts of its portfolio. In particular, these losses came the first year of a 10-year, $1.2 billion deal to market the men's Tennis Masters Series.
The company - which holds the World Cup rights through subsidiary ISL Worldwide - has said it will appeal against the decision to start bankruptcy proceedings.
"FIFA has already taken every precaution in anticipation of either outcome - acceptance of the appeal, thus enabling the ISMM Group to be restructured, or definitive bankruptcy - so as to guarantee continuity in its day-to-day business and especially the 2002 World Cup," world soccer's governing body said in a statement.
ISMM also holds the rights to the 2002 Asian Games and this year's IAAF athletics world championships.