Restructuring Plans

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Part 26A restructuring plans (RPs) have been available since June 2020 following their introduction under the Corporate Insolvency and Governance Act 2020 which introduced a new section into the Companies Act 2006 (CA 2006). Post Brexit, they are an important part of the restructuring toolkit and have seen an exponential growth, with valued guidance being issued by the courts.

In June 2023, the Insolvency Service noted several areas where further consultation may be beneficial on RPs including: (i) exploration of whether the financial burden could be eased (to reduce the costs associated with setting up and challenging an RP) (ii) a lead company concept with jurisdiction extending to affiliated companies (iii) mandatory upside sharing (ie creditors to receive a share of future profit should the rescue be successful). The Insolvency Service also recommended further guidance to help improve trust and transparency with the process to avoid the information asymmetry which exists between the company and challenging creditors/other parties (see para [4.18]) (see: LNB News 28/06/2023 41 and News Analysis: CIGA turns three).

From 1 January 2026, the revised Practice Statement for schemes and RPs 2025 governs

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Latest Restructuring & Insolvency News

Government departments update ECCTA guidance on AML information sharing measures

The Home Office, HM Treasury, Ministry of Justice, Companies House, Serious Fraud Office and Department for Business and Trade have updated guidance on information sharing measures under the Economic Crime and Corporate Transparency Act (ECCTA) 2023. The updated guidance, published on 3 October 2025, sets out provisions for anti-money laundering (AML) regulated firms to share customer information directly or indirectly through third-party intermediaries to prevent, detect and investigate economic crime. The guidance covers warning and request conditions for direct sharing, practical considerations including cross-sector sharing mechanisms, and requirements for law enforcement reporting, UK General Data Protection Regulation compliance and customer redress. The measures, which came into force on 15 January 2024, disapply confidentiality obligations and civil liability for AML regulated firms when sharing information for specified economic crime prevention purposes.

IPA issues guidance on COVID repayment scheme impact on insolvency practitioners

The Insolvency Practitioners Association (IPA) has issued guidance following HM Treasury's announcement of a voluntary COVID repayment scheme on 12 September 2025. The scheme permits individuals and businesses who wrongly claimed COVID support funds to return money until 25 December 2025. The Insolvency Service has confirmed to the IPA that repayment under the scheme does not guarantee protection to directors from enforcement action and that Insolvency Practitioners should continue to report misconduct through the director conduct reporting service, including awareness of any repayments made. The IPA is working to ensure government FAQs reflect that directors seeking repayment in insolvency situations should contact the appointed Insolvency Practitioner or Official Receiver rather than repaying directly to lenders.

Insolvency Service announces Manchester company wound-up for unlicensed insolvency activities

The Insolvency Service announced that Davis Acquisitions Ltd was wound up in the interest of the public at the High Court in Manchester on 30 September 2025. The Manchester-based firm acted as a front to facilitate unlicensed insolvency activities previously conducted by Save Consultants Ltd, which was also wound up in the public’s interest in 2024. Davis Acquisitions Ltd assumed responsibility for 78 client companies formerly linked to Save Consultants Ltd, enabling directors to transfer control and evade formal insolvency proceedings, asset recovery, and conduct directorship scrutiny. Both companies' websites guaranteed that directors could ‘leave their debts behind’ and avoid ‘difficult insolvency proceedings’ by selling their companies within 48 hours, thereby sidestepping the established procedures that protect creditors. The Official Receiver has been appointed as the liquidator of Davis Acquisitions Ltd.

Restructuring & Insolvency weekly highlights—2 October 2025

This week's edition of Restructuring & Insolvency weekly highlights includes: an analysis of a judgment that considers an application for possession and sale of a bankrupt’s property under section 335A of the Insolvency Act 1986 (Armstrong v Temblett), a closer look at Part 26A restructuring plans (Re Madagascar Oil and Re DSTBTD Ltd), plus a round-up of other news and cases for restructuring and insolvency professionals.

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