Chartered accountant Langley Group has been appointed as nominee to the proposal and a statement sent by the group on 17 June, which has been seen by PrintWeek, said that a copy of the proposal had been entered into court on 15 June.

According to the report, east London-based Paul Green Printing owes just under £600,000 in unsecured debts and £1.2m in secured debt.

The report said that in the first two months of this year, the company had experienced "extremely disappointing sales" which led to "a reluctance" by the bank to release funds to the business "even when [it] was well within the agreed facility".

A meeting of creditors was then suggested to consider the 43.38 pence in the pound proposal, which will be held on 3 July 2009.

In a statement from the Langley Group to creditors, Alan Bradstock, insolvency practitioner and Langley Group partner, said: "If creditors reject the proposal, then I consider it is inevitable that a creditor will petition for the compulsory winding up of the company."

However, he also said he is of the opinion the proposal provides "a reasonable and practical alternative to liquidation".

Paul Green Printing produces brochures, reports, magazines, point-of-sale products and catalogues.

Its accounts for the year ended 31 December 2007 recorded a turnover of £3.5m and a pre-tax profit on ordinary activities of £46,000. Managing director Paul Green was unavailable for comment.