Fledgling serviced office operator Your Space, based in Manchester and Liverpool, told the stock exchange this morning it was in talks over setting up a Company Voluntary Arrangement.
Shares in Your Space were suspended earlier this week after takeover talks were aborted.
The company said in a statement today: "Further to the announcement made by the Company on 15 September…it is currently in talks with insolvency practitioners regarding the implementation of a CVA, to be proposed to the creditors of the Company."
A CVA would allow Your Space to cancel some of its debts and agree a payment plan with creditors for the remainder.
The company said a further announcement will be made as soon as the terms of the CVA have been finalised.