Plymouth Argyle Football Club has issued a notice of intention to appoint an administrator and has been deducted 10 points from the Football League.
The Pilgrims deputy chairman Paul Stapleton issued a statement on the club’s official site stating that the club may not yet enter administration dependant on an investor coming forward.
The npower League One side has already avoided a winding up order from Her Majesty’s Revenue and Customs. A statement read: "The directors of Plymouth Argyle Football Club have today issued a 'notice of intention' to appoint an administrator as they continue to seek a solution to the company's current cash flow problems.
"This action gives the club protection from insolvency action from creditors, whilst at the same time allowing the directors the opportunity to turn current expressions of interest into a permanent and lasting solution for the club.
"This action does not mean that the club is in administration today nor does it assume that it will necessarily enter into administration at a future date. Further steps will depend upon the outcome of current discussions with potential investors."
Former Leeds United and Cardiff City chairman Peter Ridsdale is set to continue in his role as independent advisor to the club during the process.