A HOLLINS-based firm of chartered accountants has been appointed to act as a vital troubleshooter to save businesses from the brink of failure.

DTE (Downham Train Epstein) has been appointed to spearhead the new pilot scheme to rescue struggling companies with short-term cashflow problems but long-term potential.

The Company Rescue Project has been developed by the Government's Small Business Service (SBS) with the aim of reducing the number of firms which collapse because of such financial problems.

And the scheme is aimed at small and medium-sized enterprises and has the support of the Inland Revenue and Customs and Excise.

Both, in appropriate circumstances, are willing to take what is described as "a more flexible approach to the repayment of arrears". The SBS is piloting the 12-month rescue initiative in association with Business Link networks and DTE will be co-ordinating the project throughout the North West.

The company will also offer assistance to the other pilot areas across the country.

Companies which can benefit are those with less than 250 staff, likely to have Crown debts greater than £50,000 and the viability to go forward.

Those which receive help under the project can avoid insolvency and get breathing space in which to formulate a rescue plan, subject to the agreement of the creditors, including the Inland Revenue and Customs and Excise.

Other benefits include management retaining control of their business, the preservation of goodwill and asset values, maintenance of supplier/customer confidence and the potential for business refinancing.

The assistance embraces free initial consultation, a full viability review and the drawing up of a proposed rescue strategy to be circulated to key creditors to obtain their support for the repayment plan.

At this stage, there will be a cost implication to the business for the preparation of the proposal which will be charged on a time cost basis.

Subsequently, the rescue plan will be implemented and business performance monitored throughout the scheme's duration.

Under the initiative, while DTE will prepare the initial and full reviews, the reports and correspondence will be channelled to key creditors via the relevant Business Link.

A spokesman for DTE, based at Hollins Mount, said: "The Company Rescue Project has been devised to save businesses that are experiencing short-term financial difficulties but have long-term viability.

"The scheme has the backing of the Inland Revenue and HM Customs and provides greater flexibility to the repayment of historic date."

Any business which would like to discuss the scheme in further detail can contact Paul Reeves at DTE on (0161) 767 1200.