Arena Coventry Limited - the company that runs the Coventry Building Society Arena - has applied to the courts to go into administration.

A statement issued by the company today said it has identified a "preferred bidder" following an "accelerated sales process".

It said the arena will run as normal but did not say who the preferred bidder is.

It has been reported that there are four parties interested in buying the Coventry stadium, with former Newcastle United owner Mike Ashley and Coventry City FC owners Sisu rumoured to be among them.

The Sky Blues have announced plans with the University of Warwick to build a new stadium which will also form part of a proposed eco-park.

However, a planning application for the development is yet to be submitted, and it may not be needed if the club's owners secure a long-term future at the CBS Arena.

An ACL spokesperson said: "Arena Coventry Limited (ACL), Arena Coventry (2006) Limited and IEC Experience Limited have confirmed that they have applied to the court for the companies to be placed in administration.

"We anticipate that the administration orders will be made in the forthcoming weeks.

"The companies and the proposed administrators from FRP Advisory have run an accelerated sales process to sell the business and assets of the companies and have identified a preferred bidder.

"The arena will continue to trade as normal. We would like to thank all the working parties involved in helping the companies get to this stage and we are delighted that the doors will remain open to this flagship venue."

ACL said further updates will follow.