This enables them to continue trading while also agreeing to pay all, or part, of their debts over a fixed period of time – usually between one and five years. An insolvency practitioner would manage the process, distributing the money to the creditors.
From the point of view of the creditors, it can usually return to them more money than they would be likely to receive as a result of any other form of insolvency procedure. It also gives the company a real fighting chance of staying in business and safeguarding jobs. The directors and owners can also stay in control of the business.