LONDON (Alliance News) - Matomy Media Group Ltd said Wednesday its bondholders have voted in favour of the company's proposed repayment plan, avoiding the possibility of Matomy repaying the full amount immediately.
Shares in Matomy Media were down 12% at 10.14 pence each.
The internet advertising firm said 72% of bondholders voted in favour of the company's plan and the two sides will now enter discussions to complete the agreement.
The final agreement will be subject to approval from Matomy's board, the bondholders and an Israeli court.
On Tuesday, the bondholders rejected their own proposal, which would have required Matomy to immediately repay them.
On Wednesday last week, Matomy agreed to pay bondholders an increased amount between USD2.5 million and USD3 million in order for them to vote with the company. Matomy will also raise USD12 million from key shareholders to make the payments.
The structure of the raising has yet to be finalised but will see USD2 million raised through the purchase of series A bonds.
The agreement comes after months of back and forth with Rainmaker Investments GmbH, who own 10% in Team Internet, a Matomy subsidiary.
On January 9, a majority of the bondholders rejected Matomy's updated repayment plan which included undertaking USD13 million of fund raising on the London Stock Exchange.
Matomy, later the same day, said it has received a fourth letter of support from shareholders over the repayment plan.
The bondholder plan differed from Matomy's in that an additional USD3.5 million would be injected into Matomy, which could be accomplished through the issue of series A debenture to key shareholders.
Bondholders also proposed the injection could be achieved through a reduction in the cash owed to Rainmaker to USD10 million from USD13.5 million via the issue of USD3.5 million worth of series A bonds to Rainmaker.
In February, Matomy raised USD30.0 million through the issue of convertible bonds in order to fund a further acquisition of a 10% stake in Team Internet, taking its stake to 90%. The remaining stake is held by Rainmaker.
Matomy failed to pay the amount due to Rainmaker on November 30 for 10% of Team Internet, triggering Rainmaker's right to repurchase some or all of the Matomy's shares in Team Internet at 60% of their original price.
Matomy long claimed it did not owe Rainmaker an immediate repayment of all amounts under the bonds, but has also been seeking to revise the terms of its outstanding bonds.
