Leeds United have been ordered to repay a loan of just under £1m having been served with a winding-up petition.
The decision at the High Court had been adjourned until today, but the club have now been told that they could be wound up if they refuse to repay the £950,000 loan.
It is the latest blow in a period of financial instability for the club, although a barrister representing them insisted that new owner Massimo Cellino would be able to complete the payment "very quickly".
"The club wants time to pay. The payment can made be very quickly," Rory Brown told Deputy Registrar Chris Garwood at the hearing.
Mr Garwood also suggested that the loan would be repaid by Cellino, telling the court: "There is nothing which prevents him paying this debt if he doesn't wish the company to be wound up."
Another hearing of the case is due to take place on June 23.
