In a letter sent to members of the world governing body's Executive Committee, seen by insidethegames, Virgets warned AIBA would become insolvent after it was suspended by the IOC and stripped of any involvement in the boxing tournament at Tokyo 2020.

The American admitted AIBA was likely to go bankrupt as its income was "completely dependent on being the Olympic International Federation".

In the remarkably honest update to the Executive Committee, Virgets revealed AIBA will have lay off the majority of its staff and confirmed he will leave the organisation as he had failed to fulfill his mandate of ensuring the organisation remain the Olympic governing body for boxing.

He painted a bleak picture of the future of AIBA, conceding it will not be able to generate any revenue between now and next year's Olympic Games in Tokyo following the decision from the IOC and warning its finances would still be under threat even if it was able to pay off its debts of around CHF17 million (£13.5 million/$17 million/€15 million).

The IOC Session is set to ratify the suspension of AIBA here next week, a decision which Virgets believes was "made long ago".

It means AIBA will not receive the $17.5 million (£13.9 million/€15.6 million) revenue distributed to International Federations after Tokyo 2020.

"The immediate need is to determine if AIBA has a future and the finances to continue," Virgets wrote.

"In my opinion, the decisions made by the IOC were clearly designed to bankrupt AIBA. 

"Every source of income that AIBA had going forward was taken away. 

"Based upon the tone and content of the Inquiry Committee's report, it is apparent to me that the decision to suspend AIBA was made long ago and that all of the information and data we provided in the last two reports we used to identify our vulnerabilities so that the decision could ensure maximum hardship on AIBA."

Virgets revealed AIBA had "less than $400,000 (£318,000/€357,000)" in the bank and cannot afford to hold an Extraordinary Congress, which members of the Executive Committee have called for in recent weeks so elections can take place.

Some believe removing the entire AIBA leadership, including the Executive Committee, will help its bid to be reinstated at Tokyo 2020 but Virgets warned there was no guarantee the IOC would lift the suspension.

The former USA Boxing official wrote the IOC "has made it very clear that it does not want anyone involved in a leadership role going forward that was involved in the politics of the organisation previously".

He added that the reduction in staff forced by the financial peril the governing body is facing would make it "very difficult" for AIBA to operate effectively.

"Considering the fact that the Inquiry Commission stated that AIBA was not financially fit enough to do this with its current staff, it will be very difficult to convince the IOC that AIBA can perform all of its functions with a significantly reduced staff," Virgets wrote.

"It will require a significantly large amount of volunteers. 

"However, these volunteers will need to be individuals other than most of you, as the IOC will find many to be unacceptable going forward."

Virgets did offer a glimmer of hope for AIBA, claiming its finances could be repaired if an offer from Russian Executive Committee member Umar Kremlev to personally clear the debt - which he is persisting with despite concerns raised by the IOC over the lack of due diligence carried out on the proposal - is given the green light by auditors.

The American also claimed AIBA Interim President Mohamed Moustahsane was in talks with the IOC to find a "possible third way forward".

The IOC formed a taskforce to oversee the delivery of a qualification system and the Olympic boxing tournament at Tokyo 2020 when it suspended AIBA's recognition.

The group, led by International Gymnastics Federation President Morinari Watanabe, is due to make its first recommendations to the Executive Board at its meeting here today.