DSTBTD Limited Restructuring

The Summary

Company Name: DSTBTD Limited
Plan Sanctioned: August 2025

Sector: Talent-on-demand

Founded: 2017

Situation: HMRC had issued a winding up petition for historic tax debts.

Outcomes

£1.6m total creditor claims cut to £350,000
34.6p/£ return to secondary preferential creditors
6.8p/£ return to unsecured creditors
HMRC withdrew its winding up petition
Company avoided administration, preserved jobs and operations
Total costs: under £50,000
Timescales: within 12 weeks

The Background

A talent on demand business, based in London, was viable but had historic HMRC debt. HMRC had issued a winding up petition to DSTBTD Limited for the outstanding tax liability. Seeking an alternative to an immediate insolvency, DSTBTD pursued a restructuring plan - utilising recent changes in the Companies Act to do so.

The Plan

A restructuring plan was proposed and sanctioned by the court. Creditors were split into distinct classes, with secondary preferential and unsecured creditors treated separately. The plan delivered a significant reduction in overall liabilities, ensuring a better outcome for creditors than liquidation.

Detailed Returns by Class

Secondary Preferential (Class A): £300,000 (34.6p/£)
Historical Unsecured (Class B): £50,000 (6.8p/£)
Connected Party Unsecured (Class B): nil (fixed claim £1)

The Takeaway

DSTBTD Limited's plan demonstrates that restructurings are viable for smaller companies, not only large corporates. With liabilities reduced from £1.6m to £350,000 and costs kept below £50,000, the process reset the balance sheet at a fraction of the cost of administration while delivering materially better outcomes for creditors.

If your company is considering its options and facing similar financial pressures, a restructuring plan may provide a solution. Get in touch with Haliburton to discuss your situation confidentially.