RANGERS face having loans of over £20 million to remain a going concern.
New financial papers show that auditors passed the Rangers International Football Club plc as a going concern on the understanding that it was able to raised £7.2 million over the next two seasons which would take the amount of loans to nearly £23 million.
The latest £4 million cash injection is required by the end of this season with the first tranche required this month.
A further £3.2 million is also needed next season.
The club board say their forecast calculations are "critically dependent on the football performance for the current season and next season, including the participation in European football competition".
Details of the loans came as the fresh set of annual accounts revealed losses have double to £6.7million for the year end to June 30, 2017.
Some £12.9 million of investor loans are repayable in July, next year and a further £3 million owed by December the same year.
The club took in £5.875 million of additional interest free loans to help boost its working capital in the year to June, 2017 - bringing the total of interest free unsecured loans at that point to £15.9 million. The club also has finance lease agreements totalling £0.5 million.
The club chairman Dave King, who took the reins of the club two years ago, said "the intention" of the loans advanced is that they are converted to shares.
Loans by directors Douglas Park, John Bennett and Paul Murray were extended during the year for a repayment date of July and December, next year. No interest or fees have been or are to be charged in respect of the facility said the club.
Other loans have come under similar terms from shareholders and new investors, George Taylor, George Letham, Andrew Ross, Barry Scott, Scott Murdoch.
The auditors Campbell Dallas said in order for operations to continue for the next 12 months, the plc is "dependent" upon raising the additional finance to cover a projected cash shortfall.
"Failure to secure additional funding would result in the existence of a material uncertainty which may cast significant doubt as to the group's ability to continue as a going concern," the auditors said.
The board said it had reached an agreement with Dave King's New Oasis Asset Limited to provide "additional loan facilities" as necessary to meet was was needed.
New Oasis and "certain investors" had agreed to extend their existing loan facilities to July 2019.
"The board is satisfied that those parties will continue to provide financial support to the Group and have satisfied themselves as to the validity of the undertakings," said RIFC.
"The board acknowledge that had these assurances not been secured then a material uncertainty would exist which may cast doubt over the group's ability to continue as a going concern and therefore its ability to realise its assets and discharge its liabilities in the normal course of business.
"With the appropriate assurances obtained and the continued support of the investors, the board believe that such uncertainty has been removed."
The directors said it was "hopeful" that it will be able to proceed with a share issue next year to provide further finance.
"The financial support committed more than covers the projected shortfall for this season and beyond," said the board.
"As such, after making the enquiries referred to above, the board of directors believe that there is a reasonable expectation that the group will at all times have adequate resources to continue in operational existence for the foreseeable future.
"Accordingly they continue to adopt the going concern basis in preparing this report and the statutory financial statements."
As at June 30, 2017 the group held £2.8 million within cash and bank balances.
Auditors have raised the importance of raising additional finance in order to continue operations for the next 12 months in "going concern" notes in the past four RIFC accounts.
In the year to June, 2016, the board forecast it would need £3.75 by the end of season 2016/17 in order to "meet its liabilities as they fall due" and that further then unquantified funding was needed this season.
The Ibrox club’s turnover increased by £7 million to £29.2 million in the year but also saw operating expenses rise by £8 million to £32.9 million. That included a payment of £3 million to Sports Direct to terminate the unpopular retail agreement negotiated by the previous Rangers board.
Two weeks ago, the Court of Session were asked to consider a Takeover Panel appeal which decided earlier this year that a formal takeover should have been triggered after Mr King's group secured more than 30 per cent of the voting rights in Rangers.
That meant under the code of takeovers and mergers, they should make a cash offer to all other shareholders at the highest price paid in the 12 months before the offer was announced.
The Panel On Takeovers and Mergers started proceedings after Mr King did not make an offer for the remaining shares and the panel wanted the court to make an order which would force Mr King to make a cash offer at 20 pence a share to remaining shareholders.
The court was told that he is not a "poor businessman" who was unaware of his legal obligation to fund an £11m share purchase.
Advocate James McNeill QC told judge Lord Bannatyne at the Court of Session in Edinburgh that Mr King's legal team's suggestion that their client was unaware of the 2006 Companies Act was incorrect and that there was evidence available to show that Mr King was fully aware that he would have to make an offer to remaining shareholders.
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