The Football League has been told by the receivers of Birmingham City's parent company that there are sufficient funds to complete the 2014-15 season.
It was revealed earlier this month that Birmingham International Holdings Limited (BIHL), which is based in the Far East, had gone into receivership because of "fractious and inharmonious relations within the management".
There were concerns that the Blues would be hit with a 10-point deduction, but the League has now seemingly received a satisfactory response from BIHL's receivers.
In a statement yesterday, the League said: "The receivers made it clear that they do not believe that their appointment, in Hong Kong, should be considered as an 'insolvency event' under Football League regulations and have undertaken to work in a transparent manner with the Football League so as to enable the League's board to consider the matter at the earliest possible opportunity.
"The Football League also received confirmation that no funding will be withdrawn from Birmingham City and that sufficient funds are available to ensure that the club can complete the 2014-15 season."
If Birmingham did have to take a 10-point hit, they would fall into the Championship's bottom three as they are currently eight clear of the drop zone.
Pascal Lemesre
