Birmingham International Holdings Limited (BIHL) made an announcement to the Hong Kong Stock Exchange this morning.
A City statement was later adamant stating "most emphatically" that no winding up petition has been filed.
But they have admitted they have appointed Ernst and Young Transactions, the receivership arm of financial services firm EY, as the receivers.
It read: "BCFC naturally recognises the impact which this announcement may have on itself and how it may be interpreted by its supporters, staff, media and the wider domain.
"The club therefore wishes to explain why the majority directors on the Board of BIHL had deemed it necessary to take this voluntary but unusual course of action.
"First and foremost, however, the club wishes to reassure its supporters and staff most emphatically that no winding up petition has been filed against the company (BIHL) and that it's not in liquidation.
"The subsidiary (BCFC) can fulfil its obligations as a member club of the Football League and shall continue to maintain a strong dialogue with their board on this matter.
"With no apparent resolution to the fractious and inharmonious relations within the management, the majority on the BIHL Board decided that it had no other option.
"They decided to openly and voluntarily request reputable receivers to take over the management of BIHL on its behalf.
"Without any obstruction or distractions from us, the receivers will be able to manage the day-to-day activities of BIHL.
"They will take control of its finances, carry on the business of the company and take such steps as may be necessary for the purpose of preserving the future of the subsidiary, BCFC.
"The board is committed to working in unison and in full cooperation with the receivers to find the best way forward for the greater good of the club."
The receivers added: “For the avoidance of doubt, the appointment of the receivers by the court on 16 February 2015 has nothing to do with the insolvency of the company.
"As at the present moment, we do not see any liquidity issue in the company, pursuant to the order granted by the court on 16 February 2015.
"The receivers will endeavor to put together the latest financial information of the company. It's business as usual."