FORMER Oldham Athletic owner Simon Blitz is understood to be considering calling in his debts - a move that could plunge the club into administration.

Blitz, who co-owns Boundary Park landlords Brass Bank, is understood to be owed over £400,000 in overdue rent but had opted not to pursue the matter while the club was fighting for Football League survival.

The America-based businessman was also exercising patience after current owner Abdallah Lemsagam announced in January that he was open to offers for the club.

However, with heels seemingly being dragged in the takeover process, and Latics now relegated to the National League, Blitz is understood to be fed up with the current situation and preparing to take action to reclaim his cash.

A club statement this week said: “Our budget will be unchanged due to EFL parachute payments and we want to start preparations now.”

It would be the second time in two years that Blitz has taken such action if he proceeds. Latics avoided administration on that occasion by settling up.

A club statement at the time said: “The club is pleased to announce that it has reached an agreement with Brass Bank Limited to settle the debt owed to it and secured by a debenture.

“The debenture has been removed at Companies House and the court administration proceedings are now at an end.”

But Brass Bank are not Latics’ only current creditors, with their latest accounts showing debts in excess of £4million, despite posting a £108,000 profit on the previous year’s figures.

Of that is a six-figure sum still owed to the English Football League for the Covid loan which left them operating under a strict transfer embargo. According to the EFL website those restrictions remain in place, which means the balance is still outstanding.

Fans feared that this might have to be paid in full in the event of relegation, but The Oldham Times understands that there will not be a change to repayment terms. In addition, it is likely the transfer embargo will now be lifted with the club falling under the jurisdiction of the National League next season, although this has not been confirmed.

It is also unclear where, in the event of administration, it would leave court proceedings in the legal action taken by Lemsagam against Brass Bank.

There has been a long-standing dispute over Boundary Park rental arrangements and usage.

Lemsagam, who completed his takeover of Latics in 2018, is aiming to wrestle control of the stand so that matchday and all other income goes to the club.

The club has been contacted by The Oldham Times for a comment.