Chester City face the prospect of a winding up order after a firm of solicitors placed proceeding at Leeds court.
The firm, Leeds based Brooke North LLP, are believed to be owed money following legal action against the club by Chester council and the Inland Revenue in September 2005. The petition will be heard on April 10th (Tuesday).
Chester chairman Stephen Vaughan described the action as "news to him", while a Football League spokesman confirmed that the action would have no effect on the club in relation to a points deduction: "The only effect from the League's point of view would be if the club was to go into administration, which is when a 10 point penalty would apply. Bank accounts being frozen is a matter for the club rather than the League."