© Reuters 2002

SANTIAGO, Oct 30 (Reuters) - Chilean soccer's dire financial crisis took another twist on Wednesday when a judge ordered the 50,000-capacity stadium of bankrupt Colo Colo, the country's most popular club, to be sold off.

The Monumental stadium is the main asset of the club, which was declared bankrupt at the start of the year with debts of around $30,000 and which is under the administration of an auditor.

At the same time, players of Colo Colo's arch-rivals Universidad de Chile threatened to go on strike over unpaid wages, little more than one month after the end of a nationwide players strike which halted the Chilean championship for three weeks.

A judge involved in the Colo Colo case said the decision was made because a property company owned by Colo Colo owed $250,000 to a local businessman.

"We have reached this stage because it is what the law stipulates," said Clara Carrasco in a radio interview. "Colo Colo's property company, not the club, took on a debt in which it offered the stadium as a guarantee.

"On the other hand, the case has various stages... and it's possible that the creditor could reach an agreement with the estate agents."

DISASTROUS

Juan Carlos Saffie, the club's administrator, told reporters: "The selling off at his moment would be disastrous for the club."

Saffie said that Colo Colo's property assets were its main hope for survival. He suggested that one way out was for the property company itself to file for bankruptcy.

The club has been allowed to continue competing in the Chilean championship and creditors are expected to decide on its future at the end of the year.

Meanwhile, players at rival club Universidad de Chile, the second of Chile's big three, refused to train on Tuesday because they say they are owed two months' pay, local media reported.

The players claimed they were tired of waiting for an explanation from the directors and warned they could strike.

"This is all very unpleasant," said goalkeeper Sergio Vargas.

"We're having a good campaign and putting in a lot of effort. We're sorry about this but the situation is critical. When they don't pay you for two months, things get a bit urgent."