Rotherham United and League One rivals issued stark financial warning by Tranmere Rovers chief
Tranmere are third bottom but just three points from safety with a game in hand and they won their last three games before the campaign was suspended, however if the season is curtailed when clubs vote then they will be heading back to the fourth tier.
EFL chairman Rick Parry estimated the cost of the shutdown earlier this month but Palios believes the sum will continue to grow.
And he called for more talks between the EFL and the Professional Footballers' Association, and a relaxation of the league's rules governing administration, in a bid to mitigate the effects.
Speaking on 'Ridge on Sunday' on Sky News, Palios warned: "Whilst you may look at the 'hole' which has been articulated as £200 million to September - I think it's bigger than that.
"There is a real financial maelstrom coming towards the league at this point in time.
"I personally believe we haven't seen the worst of it yet, and during the course of the summer you'll see a lot more financial stress on the clubs as we move onwards and continue to pay wages.
"I think what you'll see is a lot of clubs will stumble down the road to insolvency. You might see people getting high court orders against them. They'll bumble on for a period of time."
With League One clubs still struggling to reach a consensus on completing the season, Palios repeated his belief that relegation should be scrapped in order to help ease the financial burden.
Palios insisted: "We don't want to have a decision foisted upon us that is going to affect us financially. Why would you.. in terms of certain clubs, foist on them an even worse position?"