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Dave Allen told the Yorkshire Post he would only accept a full repayment of his loans in the club and also said he did not believe new chairman Lee Strafford had secured the planned investment to revitalise Wednesday.

Allen, who is owed over £2m in outstanding loans and interest payments, said: "There is no way they have done a deal with me. As far as I'm concerned there is no deal being done.

"They are wanting everybody to take a hit on the loans. As far as I'm concerned it's a debt that has got to be honoured in full."

The former chairman said the cut he had been asked to take was around a third of the full amount.

Allen's stance could derail the planned takeover which has already secured an outline agreement with the club's bank which involves the Co-op Bank foregoing around half of the £21m it is owed.

Announcing that deal, Wednesday said the arrangement was "inter-conditional" on investment being delivered and agreements with loanees, like Allen, being in place.

Strafford set a deadline of March 31 to secure the new investment package but the necessary extraordinary general meeting (EGM) of shareholders needed to complete the takeover, which takes three weeks to arrange, would have to be called by tomorrow to meet the original target date.

But Allen does not believe funding is in place. He said significant investment would mean that paying off his relatively small loans, in full, would not be a problem.

The former chairman revealed that he had held two meetings with Strafford and his representatives and had been told the proposed investment came primarily from the US, with further backing from India, the United Arab Emirates and local investors. He said there have been no meetings for the last three weeks.

The Yorkshire Post understands the Indian and Arab interests are represented by London-based businessmen.

Allen, who owns a string of casinos, said: "I asked who are they? They said they wanted to remain anonymous. It's nonsense. I don't go around buying casinos and saying they're being bought by someone anonymous.

"It's all spin without any substance. It's all hype and talk. If they had got all this money, you'd think they'd deal with all this quite easily which just tells me they haven't got it. Why is it always a mystery?"

Strafford declined to comment.

Allen's role could be critical if the club does, ultimately, put a full takeover plan to shareholders for approval. Strafford hopes to create a large, new block of shares, reserved for the investors, which would give them overall control.

But the move would need the agreement of more than 75 per cent of those voting at an EGM. A large chunk of Wednesday's shareholding is dormant and would be unlikely to cast votes either way meaning Allen's 10 per cent holding takes on a greater significance.

Allen said Strafford's proposal included an offer for his shareholding at around 10 or 11 pence per share. He indicated this would be acceptable given it represented around the same figure he had initially paid for them.

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