THE Reading FC takeover by a Chinese consortium could be on the verge of collapse – even though it was discovered the club received a massive cash injection from them last week.

The Chronicle can reveal a £10.4m loan from Hong Kong-based Great Shine International Limited was pumped into club coffers by the prospective Chinese owners recently.

At the same time Reading broke their transfer record to sign Tiago Ilori from Liverpool for around £3m.

Royals boss Jaap Stam was vague when questioned where the Ilori cash came from as the defender’s switch from Anfield dragged on for at least a week.

However, the Chinese takeover from a group of investors led by billionaire property developer Dai Yongge and his sister Dai Xiu Li could now fall flat.

The pair have already seen one takeover attempt crash when a £130m bid for Hull City was rejected by the Premier League last summer before it had reached the owners and directors test stage.

It is said the main reason behind that deal falling through was due to a lack of transparency over the other members of the consortium who were set to provide around 50% of the funding.

It is thought Premier League chiefs passed on their reservations to EFL bosses who also have their own concerns.

Yongee and Xiu Li met with EFL representatives in Preston in mid-December, but little information has been forthcoming and Royals fans fear the takeover has collapsed.

An EFL spokesman said: “The EFL are unable to comment on this matter. This is a club issue now and only they can comment.”

Royals director Pairoj Piempongsant is overseeing the proposed takeover, which would see the current Thais owners give up 75% of their shares.

It was also reported that Barnsley chairman and former Manchester United director Maurice Watkins has been drafted in by Reading to push the takeover through.

However, the Chronicle understands there is no truth in that rumour.

The Chinese group did not attend Tuesday’s 1-0 win against Fulham at Madejski Stadium, though Sumrith ‘Tiger’ Thanakarnjanasuth, who owns 25%, was present.

Stam confirmed: “I’ve spoken to Tiger a couple of times in the last couple of weeks. I saw him on Tuesday night but I haven’t seen the Chinese people.”

Stam also recently stated: “We’re still waiting to see if it (the takeover) is going to happen or not. There is no certainty that it will be done. So we’re waiting to see if it will happen and, if the new owners come, what they want to do.”

Reading’s latest financial figures shows the club’s debt has risen to £73m, and Stam admits his focus remains on the team and getting results.

He added: “It (the takeover) is still there but, as I told the players this week, we need to focus and concentrate on the football side of it. We can’t influence what’s going to happen upstairs. We need to keep doing what we’ve been doing up to now.”

No-one at Reading FC was available for comment.