Manager Paul Lambert insisted his the club acted correctly in trying to extend goalkeeper Jimmy Walker's loan from West Ham United, until the end of the seaosn. It was believed and even announced that Colchester had extended the loan however the Football Leaguesaid they did NOT receive the paperwork before the closing of January's 5pm transfer deadline.
The League One side appealed to the FA but "Despite extensive dialogue with the Football League, we've been unable to win our appeal against their initial ruling," said chief executive Steve Bradshaw.
"We felt that we'd got the paperwork in on time for a standard loan deal until the end of the season, but have received a letter from the League, explaining that they stand by their original judgement.
"Whilst disappointed to have lost out on the appeal, we accept the League's judgement as one of its member clubs."
Phil Lambert insists it was sent because 'he saw it himself'.