West Ham's financial troubles far from over

West Ham are still facing a potential financial crisis after it emerged their new owners could be forced into liquidation in less than two months.

CB Holding, an asset management company which is 70 per cent owned by bust Icelandic bank Straumur, took control of the club on Monday, insisting the move effectively guaranteed their future.

West Ham had been on the brink of collapse as former owner Bjorgolfur Gudmundsson's investment company, Hansa, was due to be declared bankrupt after being hit by the global financial meltdown.

Straumur, which was owed £100million by Hansa, was able to complete the takeover as it enjoys a moratorium - a period of time during which payments to creditors can be delayed and restructured in order to protect the stricken company - over its own liabilities.

That is due to expire on Thursday, with the bank set to apply to the District Court of Reykjavik for a further six-month extension.

Straumur are confident that extension will be granted but the respite could only be temporary, as the bank's executives are set for a potentially decisive meeting with creditors on 6 August.