Speaking to the CT, Mr Knatchbull-Hugessen said: "As far as exercising that option, there has been no request from the Sky Blues to the directors to go down that route since the take over.
"There is a formal process and they haven't asked to begin that.
"It isn't a surprise considering if they are still trying to contain a loss, it's unlikely they are going to find a bunch of money."
City Chairman Ray Ranson confirmed at the Shareholders AGM last Saturday that the club still do not make any money from the catering despite ACL doing a new deal with Compasss Catering.