Milan Mandaric hopes Sheffield Wednesday "have a plan B" to fall back on in order to stave off administration after turning down his deal to save the club.
Leicester chairman Mandaric, who wants to stay in English football after selling his stake in the Foxes in August, confirmed his offer to buy out former Wednesday chairman Dave Allen's remaining interest in the npower League One club had been rejected.
Mandaric said: "My offer is still there, but the loan-holders did not want to go for it and it's the end of the deal I think.
"What can I do? It's not my decision, it's the decision of those people still involved in the club. I don't know if I should wait around any more. I just hope they have a plan B and that they don't go into administration."
Wednesday, in last-ditch talks with three other separate parties keen to take control at Hillsborough, face a winding-up order in the High Court on Wednesday over an unpaid PAYE tax bill of £600,000 and could go into administration, thereby incurring an automatic 10-point deduction, if they fail to reach an agreement.
Mandaric, it has been reported, offered £250,000 to Allen, who is owed £2.4million by Wednesday, and £8million to the club's main creditor, the Co-operative Bank, which is owed around £25million. He also made offers to other directors and former board members.
As well as the unpaid PAYE tax bill, Wednesday face a separate winding-up order issued by HM Revenue & Customs over VAT arrears of £300,000.
Wednesday were served with their first winding-up order in July over initial PAYE tax debts, which rose to £1.1million by the time the Co-op Bank agreed to pay them.
But the Co-op are not prepared to bail out the club again and will now effectively decide who to sell the club to before Wednesday's 11am hearing or alternatively place the club in administration.
A consortium fronted by former Wednesday goalkeeper and manager Chris Turner lost momentum in their bid to launch a takeover last month when chief investor Kevin Mundie, managing director of Dubai-based company Certified Oilfield Rentals, withdrew his interest due to family reasons.
A second consortium, Wednesday Forward, is a fans' group headed by Rotherham businessman Spencer Fearn and Sheffield accountant John Roddison, while a third party, understood to be an unknown would-be benefactor, is unlikely to gain the Co-op's support.
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