Portsmouth are in danger of becoming the first Premier League team to be declared insolvent after the club confirmed a statement of affairs had been delivered to the High Court.
Soccernet understands Pompey's accountants, Vantis, have told the courts on Wednesday that the club have debts in excess of £60 million.
The statement of affairs (SOA) document was demanded by the High Court in Her Majesty's Customs and Revenue's winding-up order. A hearing will take place on March 1.
The accountancy papers will determine whether the club can convince the court that it should avoid being sent into administration or liquidation, after the winding-up petition demanded sums of £7.4 million in unpaid VAT and £4.7 million in the last two months' PAYE.
The SOA was demanded by the registrar, Christine Derrett, after she had suggested that the club might be operating while insolvent.
The financial document presented to the court has been drawn up by Vantis, the accountants employed by Portsmouth, and will include all the club's creditors.
A Pompey insider told Soccernet: "It is possible that the club might be technically insolvent by a few million, but we won't know until we see the report later today. Our future revenues will not be included in the report, as the courts wanted to know our finances at this time."
But the club are on the verge of finalising a fifth takeover of the season, and with new owners will be in a position to refinance and clear much of the debt.
Pompey urgently need time to sort out their mess, and bring in new owners, but time is running out.