RANGERS have been threatened with administration by their own banker, it was claimed today.
Lloyds Banking Group, who have placed Donald Muir on the Ibrox board as its representative, are said to have made a shock ultimatum earlier this month.
Lloyds acted after a proposed business plan, which would have involved big cuts, was rejected by the club.
The Ibrox board are desperate to keep Rangers an attractive proposition for potential investors.
The leading contender to purchase the Light Blues is reportedly Dave King.
The Glasgow-born multi-millionaire now lives in South Africa.
He has opened negotiations with the club, although no formal offer has been made and any deal remains a long way off.
It is understood the bank wants to sell Rangers for £30 million – the total of the Light Blues’ debt.
Rangers were threatened with administration if the Lloyds business plan was not accepted by Friday, October 16.
It was on that day when Muir’s place on the board at the Glasgow club was confirmed.
Rangers manager Walter Smith admitted after his side’s draw against Hibs that the bank was now in control at Ibrox.
Smith has warned a takeover of Rangers could spell the end of his second spell in charge.
He said: “If a new owner comes in, he might want to change the manager.
“My contract expires in January, and in the normal run of circumstances, someone would leave then.
“So if the board ask me to stay on, I would consider it if the club’s circumstances have not changed.”
A football finance expert today claimed Rangers must move to England or they could face oblivion.
Bert Moorhouse, a retired Glasgow University academic, said: “No one is going to cough up backs of money for a declining asset in Scotland.”
Rangers’ frustrations on the park continued when Hibs fought back to earn a draw.
Anthony Stokes equalised Kris Boyd’s opening goal.