In a statement released by the director of Rangers football club, David King said that he does not believe that there is “a reasonable prospect that the company can come out of administration.”
King, who is planning a legal action against previous owner Sir David Murray, envisages liguidation of the club.
“It grieves me to state that it seems inevitable that the footballing institution will survive but the company won’t.
“This will entail many hurdles (that will be overcome) including ‘Rangers (2012) Ltd’ having to reapply for membership of the SFA (Scottish Football Association) etc.
King expressed sadness at the financial difficulties Rangers currently finds itself, but was positive about the future of the club, calling on all to help ensure such a situation does never again.
“It is a sad point to have reached, but if managed sensibly, it can result in Rangers returning to its former glory as a football club in the shortest time possible.
“We must all strive to ensure that an appropriate ownership structure guarantees that this event is never repeated.
“We must remember that our footballing friends across the city came very close to the point that we now find ourselves in.
“Scottish football needs a strong Rangers and Celtic – but perhaps in a slightly humbler form.
King is the second largest shareholder of Rangers, having invested millions of pounds.
“I seem to be one of the few people who actually invested cash into the club. I have made a claim of 20 million pounds on the basis of non-disclosure by the then chairman, David Murray, of Rangers’ true financial position as far back as 2000.
“Other shareholders may feel deceived like I do and wish to take similar action. (David Murray will no doubt argue to the contrary and the merits of this will be dealt with in due course in the appropriate forum.)
King said he is commited to the Rangers cause and is willing to reinvest his claim into the club.
“Any benefit I receive from my claim will be fully reinvested into the restructured football club. I remain 100 percent committed to the Rangers football club and will do whatever I can to advance its interests.”