At the moment it's a case of all or nothing

Birmingham City's Karren Brady

ITV Digital was given a week long stay of execution by the High Court on Monday in order to come to a deal with its creditors which could save it from going into liquidation or being sold off.

But the gulf between the two sides appears as wide as ever, with administrators for ITV Digital saying there has been a lack of progress in talks with the League, and the League insisting that without an acceptable offer they will be forced to take legal action.

The League has previously threatened to sue ITV Digital's backers, media groups Carlton and Granada, for �500m.

Legal threat

Speaking after the clubs' meeting at Manchester City's Maine Road stadium on Monday, Bradford City chairman Geoffrey Richmond said: "The League are prepared to continue talking, the door is still open."

But he warned the League were prepared for legal action as a last resort.

Karren Brady, Birmingham City's chief executive said: "At the moment it's a case of all or nothing.

"Everybody was hoping there would be a new offer but that's not the case. There is the possibility of a legal case."

No compromise

The withdrawal of ITV Digital's offer suggests it has now accepted no deal can be reached and is preparing to go into liquidation, analysts said.

The League has warned many clubs face financial ruin if the TV money is not paid in full.

ITV Digital originally offered to pay �50m as a compromise deal with the clubs, and later raised this to �75m - although neither offer was formalised.

Both offers were rejected as inadequate by the League.

If a deal is not reached, ITV Digital is expected to be wound up or sold off after it returns to the High Court on Monday.

Preparing for sale

ITV Digital's administrators said on Thursday: "Since Monday's High Court hearing the administrators of ITV Digital have been assessing the impact of the lack of progress in negotiations with the Football League on the company's business plan.

"It is now apparent that this has dissuaded some other suppliers from seriously engaging in restructuring discussions.

"The shareholders are re-evaluating the business plan and therefore no formal offer has been made to the Football League.

"Discussions with all suppliers will continue. As indicated on April 15, while we seek to establish whether the company can be preserved we are also preparing the business for sale."