In a statement to the stock exchange the board of Nipson Digital Printing Systems revealed that it would need to "consider its position of going concern and its solvency position" if it was unable to find a solution to the repayment demand.

Nipson UK managing director David Mooney stressed that the announcement related "only to the PLC and the restructuring of old loans and does not affect worldwide operations".

"The restructuring has no impact on the UK operation which has returned to profitability in the first six months," he added.

Nipson defaulted on the Loan Notes agreement with Israeli brokerage firm D Roseman when it placed its French manufacturing arm Nipson SAS in redressement judiciaire on 27 October 2008.

Despite Nipson SAS having left redressement judiciaire, which is the French equivalent of administration, on 10 July this year it was only last week, on 9 September, that D Roseman demanded repayment.

Nipson has organised a meeting with Roseman for the 22 September and Roseman has confirmed that it will not take steps to enforce the debt due to it until after this meeting.

In addition, the board revealed that it would need to consider the situation with regard to its long term debt obligations with its other main stakeholders, Polar Communications and Creacorp.

Nipson said the situation with Polar and Creacorp was complicated by "contractual open issues" between the two, which have led Polar to refuse to transfer the legal ownership of 23m ordinary shares in the company to Creacorp, as per the debt-for-equity swap agreement entered into between the two on 13 October 2008.

The company said: "The board is trying to find acceptable long-term solutions with Polar and Creacorp by next week, in order to secure the continuity and the solvency of Nipson."