Dungannon Swifts have reportedly decided to start winding up proceedings against debt-ridden club Derry City.
The Candystripes still owe the Swifts around £30,000 from a selling-on clause, relating to the move of Northern Ireland rising star Niall McGinn.
McGinn left Dungannon for Derry in January 2008, before signing for Celtic at the end of that year.
The long-running dispute was settled in court recently, as the clubs came to a financial agreement.
But it is understood Dungannon chairman Jarlaith Falloon was exasperated after Derry failed to meet a payment deadline last Friday.
Dungannon took the decision to force Derry City into liquidation at a meeting on Monday night.
The move by the Tyrone club could put the Brandywell club out of business.
Last week, Derry City captain Peter Hutton was the first Candystripes player to face the axe as the club deal with major financial problems.
The Derry City players haven't been paid for several weeks.
Eight will be out of contract at the end of the season.
The Derry board have been holding meetings with local businesses and fans in a bid to save the club.
© UTV News