Accountants working with MPG will hold a meeting with companies owed cash next week in a bid to implement a Company Voluntary Arrangement (CVA).
Documents lodged with the High Court blame MPG’s financial troubles on a pay dispute on the 2012 site where it claims a £2m payment has been withheld.
Galliford Try was main contractor on the athletes village block where MPG carried out drylining work.
Workers from MPG were part of the guard of honour welcoming Sir Steve Redgrave with the Olympic torch at the 2012 opening ceremony.
MPG is also caught up with pay rows with main contractors on sites in West Sussex and Hertfordshire.
The company owes £6.6m to more than 1,500 creditors.
Cash flow problems have forced MPG to cut costs by a third while turnover dropped from £30m to £10m.
The document warns that if a CVA is not agreed to then outstanding legal action to recover cash from Galliford Try could be terminated if the company goes into administration.
Rejecting a CVA would also put the jobs of 50 MPG workers in jeopardy.