It follows Dave Allen's announcement that he will not take a proposed cut on the £2m that he is owed by the club.

An official statement released by the Owls made no direct mention of the former chairman but said that not all parties involved are currently prepared to accept compromises necessary for a deal with potential investors to go through within the hoped-for time scale.

The Owls says that the potential investors remain interested and that fresh efforts will be made to find a solution, while the business plan already being put into place at Hillsborough is taking the club forward.

Wednesday say that the club remain in discussions with "credible potential investors."

The statement also says: "The board believes these investors are prepared in principle to invest, and will continue to work with them and the current stakeholders to put the right structure in place to secure their investment."

Wednesday have always said that the issues were complex and that the March 31 deadline was suggested to focus minds, though there was no guarantee that anything would be sealed by then.

Their statement added: "It is the board's intention to continue its efforts to find a solution to the current structuring problems which is acceptable to all parties involved, and it remains committed to delivering new investment in line with the long-term business plan of the company."

It is understood that investors are unwilling to spend the £27m or so that it would take just to clear the club's debts to the bank, Allen and other major creditors, before any spending directly on the club, so are looking for restructuring of the overall debt to make investment a viable proposition.

The bank, the Co-op, recently agreed in principle to write off a large portion - believed to have been around 50 per cent - of the £21m owed to it. It is understood that major creditors were also asked to take a cut on the amounts owed to them.

It is also believed that the bank - the major players in the affair because they are by far the biggest creditors - would not entertain other loan-note holders getting back 100 per cent of their money while they (the bank] were ready to forego a large percentage.

Chief executive Nick Parker said today that "a majority" of the club's loan-note holders shared the view of the bank.

Parker added: "As is their prerogative, not all creditors have agreed to the compromise package within the timetable and so we have not been able to formalise negotations with potential investors.

"Therefore no proposals can be out to shareholders, but we will continue discussions to see if an acceptable middle ground can be found."

Chairman Lee Strafford said that the bid to bring in major investment was by no means finished.

Parker also said: "The board are aware that there are potential investors interested in our club. We may be living in a tough economic climate but the interest is there.

"The reality is that no serious investor is inclined to invest in this business unless major changes are made to the financial backdrop of the company. An investor wants to make sure their money is being used to grow a business, not for servicing a large debt.

"We know the interest exists from potential investors; the board will now reconsider the structure that was proposed and see if a solution can be found that is acceptable to everyone involved.."

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