Acting chairman Peter Pannu has confirmed Birmingham will have to offload players being paid Premier League wages - but has allayed fears of a financial crisis at St Andrew's.
Blues have been the subject of reports claiming they could face the prospect of going into administration.
Pannu himself claimed on Tuesday that "unpopular decisions" will have to be made when he returns from the Far East in the middle of next week and talks with leading share-holder Carson Yeung.
But it became clear this related to the offloading of some of last season's players rather than any imminent fears of the club facing financial meltdown.
Now Pannu has acted to calm fears of supporters over the club's financial position after Yeung's assets were frozen in Hong Kong after he was charged with money laundering.
Pannu told bcfc.com: "I wish to make it clear that, whilst the benefactor's legal wrangles do pose some problems, we have sufficient contingency plans to cater for the temporary difficulties thrown at us.
"Our bankers (HSBC) have been very supportive and we currently still stand in a positive credit balance with them."
Blues have already sold Roger Johnson, Craig Gardner and Barry Ferguson from last season's first team while a host of players out of contract and loan signings have also departed.
Now keeper Ben Foster is poised to join West Brom on loan with a view to a permanent signing.
Pannu added: "When we talk about offloading players, we will consider players on Premier League wages as this is not a sustainable scenario for an npower Championship club.
"Clubs need to adjust to the new environment, particularly when the Football League has endorsed the practices of UEFA's Financial Fair Play Rules.
"Whilst in an ideal world we would wish to retain all of our star players, it is not realistic to do so.
"The club is happy to entertain their requests to play Premier League football but only if it also fits into our financial strategy.
"I wish to assure supporters that what we are addressing is no more and no less than what a prudently managed club would do."Reuse content