Rangers director Dave King fears the club are as good as certain to go under after being placed in administration.
South Africa-based King, the only survivor from the Sir David Murray era on the board, has also announced his intention to sue the former Rangers owner.
At the same time, King has criticised current Ibrox chief Craig Whyte after the Scottish Premier League champions entered administration in February.
In a 1200-word statement, King said: "I do not believe that there is a reasonable prospect that the company can come out of administration. I believe that liquidation is inevitable."
King met with Rangers manager Ally McCoist and administrators Duff and Phelps on 22nd February, eight days after the club formally entered administration.
The Glasgow-born businessman felt now was an appropriate time to comment on events at Ibrox "having had the opportunity to visit key stakeholders and to properly consider the information now available to me".
King anticipates there will be wholesale changes and "we must all strive to ensure that an appropriate ownership structure guarantees that this event is never repeated".
He said: "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.
"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 announced his intention to take legal action against Murray.
King added: "I seem to be one of the few people who actually invested cash into the club. I have made a claim of £20million 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.)"
Murray and Murray International Holdings Limited were aware of King's comments but a response was not immediately available.
King insisted any monies recouped would be invested into the club.
He said: "Any benefit I receive from my claim will be fully reinvested into the restructured football club. I remain 100 per cent committed to the Rangers football club and will do whatever I can to advance its interests."
In a statement, Whyte responded: "There is absolutely no necessity for Rangers Football Club to go into liquidation.
"I believe we will come out of administration by way of a Creditors Voluntary Agreement.
"That is in the interests of all the stockholders."