A Milestone for SMEs: EACTP CTPs Lead Groundbreaking Restructuring Plan
Credit Picture: Diva Plavalaguna
In a landmark case that could reshape the UK’s restructuring landscape for small and medium-sized enterprises, a team of Certified Turnaround Professionals (CTPs) from the European Association of Certified Turnaround Professionals (EACTP) have successfully designed and delivered the first SME-scale Restructuring Plan under Part 26A of the Companies Act 2006.
The case of DSTBTD Limited not only safeguarded jobs and continuity of trade but also resulted in the dismissal of a winding-up petition presented by HMRC — a major outcome for distressed SMEs facing seemingly insurmountable legacy liabilities. On 1 August 2025, Sir Alastair Norris sanctioned the plan, formally approving this innovative solution.
The Team Behind the Breakthrough
The Restructuring Plan was led by Tony Groom CTP and Anton de Leeuw CTP of K2 Business Partners, and supported by Tyrone Courtman CTP of RSM UK as adjudication expert. This collaboration demonstrates the depth and strength of EACTP’s community of turnaround professionals, combining decades of experience in restructuring, operational turnaround, insolvency practice, and creditor negotiations.
The advisers prepared the plan documents themselves, a rare approach in a process usually driven by lawyers. This not only reduced costs but also ensured the integration of financial restructuring with operational turnaround initiatives — demonstrating how turnaround advisers bring unique value to the process.
Credit Picture: Sanction Order - K2 Partners
Key Insights and Lessons Learned
Drawing on insights shared by the team (see document K2 LESSONS LEARNT AND INSIGHTS GAINED INTO RESTRUCTURING PLANS AND THE PROCESS here), several features made this case stand out:
- Innovative use of the Restructuring Plan: Unlike CVAs, this plan compromised secondary preferential HMRC liabilities, offering a lifeline where other tools would have failed.
- Simplicity of creditor classes: Just two classes — secondary preferential and unsecured — with overwhelming approval (100% and 99.5% respectively), meaning no cross-class cram-down was required.
- Radical transparency: Inspired by 30 years of CVA experience, the explanatory statement included a full turnaround plan alongside detailed financial disclosure.
- Stakeholder engagement: HMRC were engaged throughout the process, receiving drafts and updates early to avoid surprises. This open approach proved critical to building trust and helped justify their support without the need to challenge the plan in court.
- Operational turnaround at the heart: The plan was not just a legal mechanism but included cost reductions, management changes, working capital improvements, and cultural initiatives to ensure viability.
- Efficiency and cost control: By drafting and project-managing the process in-house, K2 Partners reduced costs to below those of a typical CVA, while also ensuring timelines were tightly managed.
- Judicial scrutiny passed with confidence: The Court confirmed fairness in class composition and dismissed HMRC’s winding-up petition, cementing the plan as both lawful and commercially sound.
Why This Matters
This case is more than a legal milestone. It proves that Restructuring Plans are a viable tool for SMEs, not just large corporates, when combined with skilled turnaround execution. It sets a precedent that could open doors for many viable but over-burdened businesses — especially where HMRC liabilities and legacy debts have made other solutions unworkable.
It also underscores the unique contribution of EACTP-accredited CTPs: the ability to blend operational, financial, and legal strategies into practical, deliverable solutions that rescue companies and protect value.
Growing Together as a Community
At EACTP, we are proud to celebrate this achievement. It highlights how our members learn from each other, collaborate, and create solutions tailored to the challenges at hand.
If you are a CTP or CTA with achievements, case studies, or insights to share, please get in touch — we want to showcase your successes and spread the lessons across our growing community.
In the meantime, don’t miss our 2025 Mastermind series, where CTPs share skills, case experiences, and cutting-edge insights. These sessions are free for Students, CTAs, and CTPs:
- Essential Skills for the New Turnaround Landscape – Wednesday 17th September, 1600 BST / 1700 CEST. Register here.
- Customer Trust in Struggling Brands – Wednesday 22nd October, 1600 GMT / 1700 CET
- Global Leadership in Turnaround: Redefining Purpose and Handling Career Transitions – Wednesday 19th November, 1600 GMT / 1700 CET
- Stakeholder Trust and Behavioural Incentives – December (date TBC)
Congratulations again to Tony Groom, Anton de Leeuw, Tyrone Courtman, and their teams for this milestone case. It is a proud moment for the EACTP community and a beacon of innovation for the SME sector.
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