Coventry's board have confirmed they intend to put the club into administration.
The cash-strapped Coca-Cola Championship outfit are currently negotiating a takeover which they anticipate will be completed shortly, but they revealed in a statement this afternoon they had "filed in court notices of intent to go into administration".
The statement continued: "This is merely a legal process protecting the Bank and its creditors and should speed up the potential takeover of the Club and therefore take Coventry City into a solvent financial situation."
The Sky Blues are 14th in the table but are in a perilous financial state with estimated debts of £38million.
"This legal notice gives Coventry City a 10-day window to complete the takeover talks with Ray Ranson and Sisu Capital, along with all other parties," the statement added.
"Following recent speculation, the club can confirm can that staff and player wages have now been paid and we look forward to a successful conclusion of the takeover in the near future.
Meanwhile, Championship rivals Ipswich have announced agreement on a deal to sell 87.5 percent of the club to media entrepeneur Marcus Evans.
The plan to sell to Evans was announced in October by chairman David Sheepshanks and will see him clear the club's £32million debt and invest a further £12million into the Portman Road club.
The Ipswich board have now reached agreement with Evans and have called an emergency general meeting for December 17th where the deal will be ratified.
