Real Mallorca have applied to enter voluntary administration.
Mallorca were the surprises packages of the recently-concluded Primera Division campaign, Gregorio Manzano guiding his team to a fifth-place finish and a Europa League berth.
Their achievement was all the more remarkable given their financial problems, which have now prompted the club to seek voluntary administration.
Majority shareholder Mateu Alemany announced: "The board of directors convened to reach agreement to submit the request for voluntary bankruptcy in the commercial court.
"Over the past two years, Mallorca has suffered a very complex economic situation, with serious financial problems and an inability to meet its commitments.
"This is a legal instrument that enables Mallorca to see the future in another way - to have a budget structure that has logic and controls debt, to take stringent budgetary measures to bring spending in line with earning capacity.
"These are necessary things that open a future of hope that is necessary and has not existed at the club for two years.
"The bankruptcy law gives us this opportunity and provides a positive expectation for the club. It is a solution, not a problem.
"Whatever happens, we start a new stage. It's exciting because it ensures the viability of this club, which has been in serious danger of disappearing."