Rangers has taken its first step towards administration - as its owner attempts to secure the football club's "long-term security, survival and prosperity".The Scottish champions have lodged what is known as a 'paper of part' - which is a notice of intention to appoint an administrator - at the Court of Session in Edinburgh.
It is believed the Ibrox club, which has won a world record 54 league titles, now has five days in which to declare formally that administrators have taken over the running of the club.
Rangers' chairman Craig Whyte - who bought the club from Sir David Murray for just £1 last May - issued a statement.
:: Read the full statement here
The statement says: "I have taken the decision that the most practical way to safeguard the long term future of the Club is to go through a formal restructuring process.
"It may still be possible to avert this but that is not the most likely way forward. What is of paramount importance is the long-term security, survival and prosperity of this great football club.
"That is the job I knew I was taking on when I became majority shareholder in the club and it is in the best interests of Rangers that it is completed before the end of this season.
"It has meant turbulent times. We have gone from a club mired in excess of £20 million bank debt to a club which is trying to stand on its own feet, earning more than it spends.
"From my early days as chairman I saw that administration was a very real option to enable the club to address these challenges and make a fresh start.
"Frankly, the case for administration in pure financial terms was compelling but I was acutely aware that such a great institution as Rangers could not be viewed exclusively in financial and business terms.
"Against a backdrop of falling revenues, costs have to be cut significantly. Painful as though that may be, it is the future of clubs such as ours."
Rangers are involved in two separate disputes with HM Revenue and Customs - and face a tax bill of £49m.
A legal case against it centres around the use of employee benefits trusts (EBTs) which were in place before Mr Whyte took over at Ibrox.
The verdict of the tax tribunal case was understood to be imminent.
If Rangers, currently second in the Clydesdale Bank Premier League, do go into administration, they face a certain 10 points deduction which would all but hand this season's title to Old Firm rivals Celtic.
The legal move was confirmed just hours after Celtic announced a steep fall in profits - to £0.18m in the six months to the end of December, down from £7m in the same period of 2010.
Celtic Park part-blamed the squeeze on consumer spending for its own financial woes.
As one of the best supported clubs in the UK, Rangers have had an average home attendance this season of more than 45,000.
But the Ibrox club were forced to sell star striker Nikica Jelavic to English side Everton on last month's transfer deadline day in a bid to bring in some cash.
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