Coventry City CEO Tim Fisher expects the Sky Blues to be under a permanent transfer embargo.
In an interview with Free Radio's Darryl Murphy, Mr Fisher said: "The current situation is 'desperate' due to a second third party debt order has being placed on the club.
"I have deep, deep concerns about the viability of the business. The legal pressure is unsustainable and at the moment, the transfer embargo will be permanent - because wage bill far exceeds 60% of turnover."