Documents seen by the Enquirer detail how much is owed by Squibb as it seeks agreement for a Company Voluntary Arrangement (CVA) with creditors.
The CVA proposals by Begbies Traynor show £23.3m owed to more than 300 creditors by the group which had a turnover of £30.9m for the year to January 31 2022.
Unsecured creditors in the supply chain are owed £13.8m.
Suppliers and subcontractors owed money are being asked to agree the CVA which could see payments of 65p in the pound on debts compared to receiving just 1p in the pound if Squibb goes into liquidation.
The five-year CVA deal would see Squibb make monthly payments of between £100,000 to £160,000 as it continued trading.
The company struck a deal with HMRC last year for extra time to pay tax arrears of £4.4m but a request for a further extension was rejected and the tax authorities have issued a winding-up petition which is due to be heard later this month.
Squibb has sold and leased back its headquarters raising £8m and the Squibb family has loaned the business £4.2m.
The CVA document states: “The Company is now in a position to move forward but requires creditor support with existing debts and does not want to proceed into liquidation or administration which
would serve to terminate all contracts and result in a worse outcome for creditors as a whole.
“The Company is already the subject of an HMRC winding up petition. As a result, it is likely that the Company will be wound up by the Court if the CVA is not approved. This Proposal for a CVA is being presented to creditors as an alternative to the Company being put into liquidation.”
Three quarters or more in value of creditors need to agree for the CVA to pass.