To preside over the collapse of one famous club could be described as unfortunate, but to be in charge of two crushed by the weight of huge debts would be an indelible blot on the career of Peter Ridsdale.

The former chairman of Leeds United, who left the Yorkshire club in 2003 with debts of more than £78 million, has been pitched into a legal battle that could force Cardiff City, his new club, into administration.

Langston Corporation, thought to be owed £30 million by Cardiff City, said yesterday that it had no confidence in the board, led by Ridsdale as chairman, and that the club should either pay the debt or relinquish control to them. Langston, a Switzerland-based investment company, is taking the club to court next month.

The legal battle has sparked fears that Cardiff may go the same way as Leeds and face administration, which would lead to the penalty of starting a new season with a ten-point deficit.

However, Langston said it had no intention of attempting to wind up the club and accused the Cardiff board of raising “the spectre of administration”. Hextalls LLP, solicitors acting for Langston, said in a statement: “Langston questions why the club has raised the issue at all. The club has also stated that Langston is going to force the club into administration if a significant judgment is obtained against it. Hextalls is instructed to state that administration is not an option being considered by them. All that Langston wants is to be paid what is due to it.”

Ridsdale was not available for comment last night but it seems that he is not at fault for Cardiff’s financial state. The huge debt was originally taken on by Sam Hammam, the Lebanese businessman, who handed over the chairmanship to Ridsdale a year ago. Ridsdale admitted in his recent autobiography that, when he discovered the £30 million debt, “saving Cardiff would be like saving the Titanic”.

But the Cardiff ship is sinking much quicker than he thought. The club languishes two places off the relegation zone in the Coca-Cola Championship with the job of Dave Jones, the manager, hanging in the balance. Now Langston is pressing for its money, although Ridsdale says the debt was renegotiated down to £15 million, payable by 2016, by selling the naming rights for the club’s proposed new £200 million stadium to Langston.