A COMPANY "life support" system has enabled dozens of North West businesses to recover from terminal decline and helped safeguard hundreds of jobs.

The Whitehall-backed pilot scheme, which is due to conclude its 12-month trial period shortly, is proving to be a great success, according to regional co-ordinators Bury-based DTE Corporate Recovery.

The firm, located in Hollins, is working with Business Link North Manchester to help ailing Bury and Bolton businesses avoid insolvency through the Company Rescue Project, launched last year by the Government's Small Business Service.

So far, more than 30 struggling North West firms, including a number in the Bury and Bolton area, have stayed afloat thanks to the regional scheme which has protected 300 jobs.

It provides a financial survival pack for companies with short-term cashflow difficulties, but long-term viability. Both the Inland Revenue and Customs & Excise, often major creditors through unpaid VAT and PAYE, are supporting the scheme.

Additional benefits include management retaining control of the business, maintenance of goodwill and asset values and protection of customer and supplier confidence. Potential refinancing options are also available.

The pilot scheme, operating in five UK regions, is designed to help small and medium-sized businesses with a workforce of less than 250, Crown debts of more than £50,000 and long-term viability.

Paul Reeves, director at DTE Corporate Recovery, said: "In the past, some companies with serious tax arrears would be wound up by the Crown but, because not all of them were terminally ill, many would simply start up again at great cost to the public purse.

"The Crown are being far more flexible and, where appropriate, have extended periods for the repayment of arrears because they have a professional body to advise them.

"After a free consultation, we would carry out a viability review and produce a proposed rescue package to be circulated among creditors."