Household names like Virgin Atlantic, Cineworld and Superdry have used restructuring plans (RPs) to survive financial difficulty. But for smaller businesses, RPs have felt out of reach — too costly, too complex and designed for problems on a larger corporate scale.
Opus, working alongside specialist restructuring lawyers at Addleshaw Goddard, recently explored using an RP to save a small Scottish construction business from insolvency. This signals a real shift: RPs are becoming a viable option for SMEs, and directors should be more aware that they exist as a potential option when times get tough.
What is a restructuring plan?
Introduced under the Corporate Insolvency and Governance Act 2020, a restructuring plan is a court-approved mechanism that allows a company to renegotiate its debts with creditors while staying in control of the business. The goal is to keep the business trading, preserving jobs and creditor relationships while avoiding the costs and disruption of formal insolvency.
Crucially, an RP can bind creditors (including HMRC) to agreed terms even if they vote against it. This is particularly relevant where HMRC is owed money (a common situation for businesses in financial difficulty), as it means a viable rescue plan isn’t automatically blocked by a single creditor’s refusal to engage.
Until recently, the perceived costs and complexity involved in RPs put them off the table for most small businesses. However, that assumption is increasingly being challenged. A new Practice Statement issued in September 2025, with an effective date of 1 January 2026, has helped streamlined the process. There is hope that this will also open greater dialogue with HMRC to engage with RPs as a result.
The SIR Joinery case: what happened
SIR Joinery was a small construction business based in Aberdeenshire with around 20 employees. It had traded profitably for a number of years before falling into financial difficulty. Working with Addleshaw Goddard, Opus helped develop an RP that offered all creditor classes a meaningful return on their debt.
The plan covered four categories of creditors: HMRC, a landlord, trade creditors and other unsecured creditors. Each was offered a different repayment structure reflecting their position and importance to the business.
Suppliers and subcontractors (critical to completing live and upcoming projects) were prioritised to protect the firm’s ability to keep working. HMRC was offered 50% of the outstanding debt repaid over 36 months, which was significantly better than the 17% it would have received in administration.
Unfortunately, there was further deterioration in the business during the process, so the plan did not proceed.
Even so, the case matters. It demonstrated that an RP is now achievable for a business of this size, at a cost broadly comparable to a connected party pre-pack administration.
What this means for directors facing financial difficulty
If a business has a viable future but is weighed down by debt, an RP may be worth exploring alongside other options such as a company voluntary arrangement (CVA) or administration. Seeking specialist advice early is crucial, as the sooner options are explored, the more possibilities are available.
The SIR Joinery case is a reminder that insolvency isn’t always the only or inevitable outcome for a business in difficulty – and that the right advice can open doors that aren’t immediately obvious.
Opus works closely with specialist restructuring lawyers, such as Addleshaw Goddard, to ensure businesses have access to the full range of solutions available to them. Contact us at rescue@opusllp.com or call 0203 995 6380 to arrange a call with one of our specialists.