Rangers chairman Craig Whyte has admitted that he had little option but to submit plans for the club to enter administration.
Whyte has also revealed that he made the decision with the club's long term future in mind.
"Since I took over the majority shareholding of the club in May last year, it was clear to me the club was facing massive financial challenges both in terms of its ongoing financial structure and performance and the potential consequences of the HMRC first tier tax tribunal," Whyte said in a statement.
"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."
Rangers will be handed an automatic ten-point penalty if they enter into administration.