“The Fin Burns situation is actually quite simple. We intended to use proceeds of a player sale to settle this fee and as soon as the EFL told us this wasn’t possible – due to reasons not related to us, we made a direct payment immediately to end the matter,” Ilicali said.
“With regards to payments to suppliers, unfortunately, the club experienced a cash flow issue when it didn’t receive a £1.5m payment for a player which was intended to clear invoices from suppliers.
“I will cover this shortfall until we receive the funds we are owed and our team are in communication with all suppliers to rectify any outstanding issues as soon as possible.
“I want to reassure our fans that we have zero conflict with any clubs. Perhaps there were some finance administrative errors but I am sure the EFL will be understanding to our appeal and we are confident in our case.”
The Tigers avoided relegation to League One on goal difference last season and have since replaced head coach Ruben Selles with Bosnian Sergej Jakirovic.
Selles is now in charge at Sheffield United.