A COMPANY "life support system" has helped dozens of struggling North-west businesses safeguard hundreds of jobs.

The Whitehall-backed pilot scheme -- running for a 12-month trial period -- is proving to be a great success, according to regional co-ordinators DTE Corporate Recovery.

The Bury-based firm is working with Business Link North Manchester to help ailing businesses avoid insolvency through the Company Rescue Project launched last September by the Government's Small Business Service.

So far, more than 30 struggling regional businesses -- including a number in the Bolton and Bury area -- have stayed afloat, safeguarding up to 300 jobs.

The scheme provides a financial pack for companies with long-term viability which have short-term cash flow difficulties.

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, which is operating in five UK regions, is designed to help small and medium-sized enterprises with a workforce of fewer than 250 and Crown debts of more than £50,000.

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." He added: "I would urge the directors of any SME in difficulty to look into this scheme."

Information about the Company Rescue Project is available from Paul Reeves on 0161-767-1200.