The proposed £27m takeover had not been completed by the Friday 15th December deadline and a report on SKY Sports today revealed:
Cardiff face the prospect of 'going into receivership' unless shareholders agree to a financial restructuring.
The club's shareholders will be asked to approve a proposal to unlock £6million at an extraordinary general meeting at Ninian Park on January 9.
Paul Guy, director of PMG - the site developers of the club's proposed new 30,000-seater stadium - is worried that major shareholder Sam Hammam could block the move and fears that could lead to liquidation.
"If Sam does not vote for this proposal, it would mean the club going into receivership and then liquidation - I can't put it any simpler than that," Guy told the South Wales Echo.
"We need the £6million to survive. If Sam backs the proposal then the stadium goes ahead and the club has a bright future."
Cardiff chairman Peter Ridsdale also stressed the importance of voting through the proposal.
"The company's shareholders will be asked to ratify the new investment proposed under the club's recently announced restructuring scheme," he told the club's official website.
"The funds to enable the share subscription to proceed are in place. If such restructuring is agreed, then the club can trade into the future and the new stadium project can go ahead as planned.
"The (Cardiff) council has already made the successful completion of this restructuring exercise a pre-condition to the new stadium being given the final go ahead.
"PMG Estates, who've already made a £3million short-term loan facility available to the club, are due to make a further £9million loan available as a part of the new stadium funding process.
"They've indicated that these monies will not be forthcoming if the planned financial and management restructuring are not voted through at the EGM."
At least 76% of the existing shareholders need to agree to the proposal for it to be accepted.
After nearly leading Leeds United and Barnsley into financial oblivion is Cardiff City the next team to fall at the hands of Publicity Pete?
When will they learn hey.