The initial creditors list put forward by Haines Watts shows that VIP owes an aggregate of 3.37m. Under the proposal creditors would receive 75p in the pound over five years. They will vote on 22 July.

VIP Print managing director David Thomas said the company had suffered cashflow problems after being hit by bad debts of 500,000 last year. The business is very busy and is trading profitably, he added. He was confident that the five-year plan was well within the 4.9m-turnover companys ability.

The Royal Bank of Scotland finance company Lombard is owed 747,770, Alex Lawrie Factors is owed 594,293 and Sovereign Finance 182,437. Paper companies include James McNaughton, in for 347,277.