In 1946 USA lent money to the UK as a post World War ll loan. The Anglo-American Loan Agreement was made in order to financially adjust the UK through the transition of war into a period of economic growth, whilst maintaining overseas commitments. Without this help the UK would have declared bankruptcy.
The loan was paid off in 2006 with additional commitments paid off and in the most part written off, in 2013. Which is ironic really as the UK is once again bankrupt. This time though, nobody cares as most other countries are also bust.
However, directors are not countries and have to play by different rules. If a customer stops paying you then you have to stop paying your suppliers.
They then issue you with a Winding up Petition and you then have a choice as to whether you wish to save your business through the use of a Company Voluntary Arrangement.