Can't see them dropping the legals, but I fear too many people are banking on them doing just that and handing everything over to Hoffman.
They might take the club non-league just so it still exists if that aids their legal battle. They can probably keep Otium going as a company without the need to actually have a football club. That could also rule out a phoenix club as technically the entity that is CCFC would still exist.
Basically they won't give a seconds thought what is best for the football club it will be entirely down to what is best for them,
You can't just "take the club non league"
The club more than likely won't get expelled from the EFL. If they did, then they would have to apply to join one of the non efl leagues below L2. Pretty sure there are some rules about how far down that has to be too.
Possibility for non league to happen could also be that SISU get so peed off with everything and all of the campaigns against them, that they wind club up.
Then, any non league entity would have yo start around the bottom tiers (absolutely horrific in every sense of the word, standard, fans, facilities etc) and would not be Coventry City FC.
Astounds me that seemingly a fair few want this to happen.