In the face of recession, a number of printers have gone into administration, most as a result of debt levels owed to creditors.

LC Corporate Strategies, the business turnaround arm of insolvency practitioner Leonard Curtis, recently completed a deal for a company in which administration was avoided, and said the print industry could benefit from similar deals.

Stephen Fern, LC Corporate Strategies director, told PrintWeek that his business had approached the creditors and negotiated a deal that kept its client afloat and ensured creditors received some payment.

He claimed that creditors are more open to accepting formal pay deals outside a Company Voluntary Arrangement (CVA) as opposed to opening up formal legal proceedings that could result in an insolvency process, where the likelihood of receiving any payment is small.

He said: "Increasingly no dividends are going to creditors from administrations. Creditors should be prepared to take time to pay and allow payments to be spread over a period, as long as they are communicated with.

"It is tough for the managing director of an SME, but you can't bury your head in the sand. It is about being open and communicating.

"Everybody should be treated like that, customers, creditors, the Inland Revenue and even the bank. They are more likely to be supportive."

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Industry backs calls for more creditor rights in pre-packs