JEFF Mostyn has confirmed his consortium's alliance with Marc Jackson has broken down due to "contractual reasons".

Mostyn says the spilt came about because Jackson failed to meet certain funding criteria - a claim strenuously denied by Jackson.

A consortium involving Mostyn, Jackson, Steve Sly and other unnamed investors were hoping to finalise a deal for the club after having a bid accepted, in principle, by administrator Gerald Krasner last month.

But speaking to the Daily Echo last night, Mostyn said: "I can confirm that the proposed consortium, including Marc Jackson, has broken down for contractual reasons.

"A pre-requisite of Gerald Krasner accepting an offer was threefold - a fully signed confidentiality agreement, supplying a proof of funds and for me to continue to fund the administration, thereby allowing the club to continue trading.

"We fulfilled all the requirements of placing a bid to Gerald Krasner, which was subsequently accepted, subject to contract.

"While we are all certain that Marc Jackson had the best intentions when he set out his plans for the future of the club and also provided by way of a solicitor's letter an acceptable proof of funding, this letter was not only acceptable to Steve and myself but, of more importance, it was accepted by Gerald Krasner as being bona fide.

"Regrettably, like many others before him, and as Gerald Krasner said at his press conference, everyone wants to buy a football club but it is handing over the cheque that is the acid test and, in this case, the funds have not been forthcoming.

"With the proposed creditors' meeting due on April 7, this has left a very short time frame with which to fill the financial void left by the lack of promised funding."

Jackson, who claims to specialise in business strategy, was understood to be utilising his vast network of contacts, both in the City and around the world, to bring investment to the table.

He was unveiled as the third member of the consortium last month.

When contacted by the Daily Echo last night, Jackson said: "There was a contractual breakdown, however, conditions critical to the transfer of the funds were not met by Jeff. That's what happened."

Jackson went on to express his disappointment at the breakdown and added: "The plans I have for this football club are unbelievable and I did very much try to supply something which is viable for the long-term future of the club.

"However, funding conditions have to be met before funding comes into any deal and contractual agreements have to be agreed. If they are not satisfied then funding isn't released. Our consortium has broken down but that doesn't mean I've walked away."

Mostyn and Sly are understood to be pondering their next move, while Kraser has said he will not be making any statements until after next week's creditors' meeting.