Head of the Small Business Service David Irwin today unveiled a pioneering scheme aimed at giving small business suffering from short-term financial difficulties a second chance.
Under the plan advisers will work as company 'doctors' and put together rescue packages that concentrate on long-term debt management through realistic assessments of businesses for creditors. The credibility of that assessment will be crucial as it will provide the basis for negotiation on payment arrangements with creditors.
They will then:
confirm that the debtor firm is capable of rescue;
develop a package which takes account of the firm's needs (these could include financial, management or marketing); and
*ensure the company stays on the road to recovery and learns from
its experience.
