If you can't pay your debts, as and when they fall due, then perhaps you can extend the period over which they become due by agreement. This is an informal deal, whereby the creditors of the company agree to extend the payment terms over 12-18 months. So in effect, a time to pay plan. Of course, you will need to pay 100p in the pound but the extra time can save the company.
This informal deal we have called Plan A -. Read our page on informal turnaround and Plan A
Blogged by Robert Moore