After an attempt to process a company voluntary arrangement (CVA) Rangers' proposal has been rejected by HMRC forcing them to go ahead with a voluntary liquidation.
This comes as quite a shock to the club as they were expecting to be able to use a company voluntary arrangement to help them trade on.
The assets of the club may be purchased by Charles Green's consortium in the hope of setting up a newco so the club can start afresh.
Although a pre-pack liquidation and a newco is seriously being considered, it means that the club will not be able to play in Europe for three years and this could mean that they will lose some key players, further damaging the club's position, not only commercially, but also through potentially losing fans.
HMRC were owed more than £21m from Rangers and they were the creditor that pushed the club into administration back in February 2012.
It is said that a spokesperson mentioned that a company voluntary arrangement may have been more constricting than they would have liked and the pre-pack liquidation will allow them to sell the remaining assets of the club to the potential newco, helping them to get a fresh start.
