Farsley Today reported how the club were hours away from going out of business in early September, following a two-month spell in administration.

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Celtic president John Palmer then seemed to have saved the day with a last-minute rescue package that was provisionally accepted by the Blue Square North side's administrator, accountancy firm Mazars.

But now it has emerged that HM Revenue and Customs (HMRC) - Farsley's principal creditor - is unhappy with the proposal that would formally bring the 101-year-old club out of administration.

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Under the terms of the proposed deal - a type of insolvency procedure known as a Company Voluntary Arrangement (CVA) - HMRC would receive only a proportion of the money it is owed.

So-called 'football creditors' - such as players and other clubs - would, however, be paid in full.

As a result, HMRC is refusing to support the CVA - and its status as principal creditor means the deal cannot go through without its backing.

That in turn leaves Celtic at risk of breaking a league rule which stipulates clubs leaving administration must do so via a CVA.

Mazars is now due to discuss Celtic's future with the Football Conference, which runs Blue Square North.

Conference general manager Dennis Strudwick confirmed that failure to exit administration via a CVA could theoretically render a club ineligible for its competitions.

But he also stressed no decision on Farsley's continued participation in Blue Square North would be taken before talks with Mazars.

A Celtic spokesman said the club was still taking stock of the taxman's newly-revealed opposition to the CVA.

He also said the club's game at Redditch tomorrow (Sat) was due to go ahead as planned.