Dundee appear 99% certain to go into administration after the football club failed to pay players and staff outstanding wages on Tuesday.
It appears that only a late injection of cash from benefactor Calum Melville will prevent administration for the second time in seven years.
The Division One club are discussing a £350,000 debt with the tax authorities.
And former chairman Bob Brannan is set to write an open letter to fans blaming Melville for the club's plight.
Dundee failed to pay salaries last Thursday and have promised to pay half of what is owed on Wednesday.
But, ahead of the news of splits emerging within the Dundee boardroom, Player's union chief executive Fraser Wishart said: "Our opinion is that the club has fundamentally breached the players' contracts.
"Why is there money in the bank and yet the club can't pay the wages? That's the fundamental question that hasn't been answered.
"We have advised the players to continue to train, but there will come a time when players can't justify training because of the costs involved."
Team manager Gordon Chisholm revealed that the club were holding talks in Edinburgh on Tuesday afternoon, with insolvency practitioner Blair Nimmo brought in to liaise with Her Majesty's Revenue and Customs.
"We can only hope we get our half wages tomorrow and the rest of the balance before the end of the week," said the manager.
"Reasons were given for it only being half wages, but I'm not going to go into that.
"I don't think it's fair that it is dragging on. There are a lot of people in the dark here.
"Hopefully, there will be some sort of conclusion today and, hopefully, it's positive."
Asked whether administration was a real threat for the Dens Park club, Chisholm replied: "Without doubt." He also said that the players were in low spirits.
"Fortunately, we don't have a game this Saturday," he said. "But it's like anybody who hasn't received their wages, they are obviously down and they're concerned."
Speaking last week, chief executive Harry MacLean was adamant that the club will not go out of business.
"Absolutely. I hope that Dundee FC is still here in another 100 years' time," MacLean said.
Local businesses have already pledged to raise £75,000 towards the amount that is due in full to HMRC, but survival may rest on Melville agreeing to underwrite a further portion of the demand.
HMRC is seeking payment for the period between January and April 2010, when the club failed to pay their PAYE and National Insurance bill.
However, the taxman could lose out entirely with the club owing about £1.6m to directors Melville, Bob Brannan and landlord John Bennett in soft loans.
The trio could push through a creditors voluntary arrangement, which would apply to all creditors, writing off the money due and forcing the club into administration.
With HMRC no longer having preferred creditor status, it would lose out on almost all of the money due to them.
Penalties available to the Scottish Football League range from a points deduction to relegation, so the club are keen to come to a deal with the tax authorities.
A pledge made last weekend by Melville to lodge a six-figure down-payment and provide a legally-binding personal guarantee to cover the club paying the outstanding balance in instalments is the best hope of avoiding administration, if HMRC accepts that offer as opposed to its demand for immediate payment.
It appears that only a late injection of cash from benefactor Calum Melville will prevent administration for the second time in seven years.
The Division One club are discussing a £350,000 debt with the tax authorities.
And former chairman Bob Brannan is set to write an open letter to fans blaming Melville for the club's plight.
Dundee failed to pay salaries last Thursday and have promised to pay half of what is owed on Wednesday.
But, ahead of the news of splits emerging within the Dundee boardroom, Player's union chief executive Fraser Wishart said: "Our opinion is that the club has fundamentally breached the players' contracts.
"Why is there money in the bank and yet the club can't pay the wages? That's the fundamental question that hasn't been answered.
"We have advised the players to continue to train, but there will come a time when players can't justify training because of the costs involved."
Team manager Gordon Chisholm revealed that the club were holding talks in Edinburgh on Tuesday afternoon, with insolvency practitioner Blair Nimmo brought in to liaise with Her Majesty's Revenue and Customs.
"We can only hope we get our half wages tomorrow and the rest of the balance before the end of the week," said the manager.
"Reasons were given for it only being half wages, but I'm not going to go into that.
"I don't think it's fair that it is dragging on. There are a lot of people in the dark here.
"Hopefully, there will be some sort of conclusion today and, hopefully, it's positive."
Asked whether administration was a real threat for the Dens Park club, Chisholm replied: "Without doubt." He also said that the players were in low spirits.
"Fortunately, we don't have a game this Saturday," he said. "But it's like anybody who hasn't received their wages, they are obviously down and they're concerned."
Speaking last week, chief executive Harry MacLean was adamant that the club will not go out of business.
"Absolutely. I hope that Dundee FC is still here in another 100 years' time," MacLean said.
Local businesses have already pledged to raise £75,000 towards the amount that is due in full to HMRC, but survival may rest on Melville agreeing to underwrite a further portion of the demand.
HMRC is seeking payment for the period between January and April 2010, when the club failed to pay their PAYE and National Insurance bill.
However, the taxman could lose out entirely with the club owing about £1.6m to directors Melville, Bob Brannan and landlord John Bennett in soft loans.
The trio could push through a creditors voluntary arrangement, which would apply to all creditors, writing off the money due and forcing the club into administration.
With HMRC no longer having preferred creditor status, it would lose out on almost all of the money due to them.
Penalties available to the Scottish Football League range from a points deduction to relegation, so the club are keen to come to a deal with the tax authorities.
A pledge made last weekend by Melville to lodge a six-figure down-payment and provide a legally-binding personal guarantee to cover the club paying the outstanding balance in instalments is the best hope of avoiding administration, if HMRC accepts that offer as opposed to its demand for immediate payment.
