Investors in Dorchester Pacific have strongly supported a restructuring plan, making it the first finance company to emerge from moratorium.
The finance firm warned it faced receivership unless investors accepted ownership of four hotels and a mixture of interest bearing notes and shares in the company.
At a special meeting in Auckland on Wednesday, 80% of debenture holders and 95% of noteholders voted in favour of the deal, exceeding the 75% threshold needed to go ahead.
The plan is conditional on Dorchester raising more than $8 million through a capital raising which has been largely underwritten by the company's major shareholders, the Business Bakery and Hugh Green Investments.
Some investors at the meeting were encouraged by the Business Bakery's support and that co-founder Grant Baker was to become chairman, while others felt they had no choice but to approve the plan because receivership was just as uncertain.
Dorchester chief executive Paul Brynes says he's humbled by the support for the plan and is confident of returning value to shareholders.
