Mainboard-listed The Stratech Group has failed to garner creditors' approval for its proposed scheme of arrangement, said the surveillance technology provider.
A scheme of arrangement is a collective agreement between a company and its shareholders that must be approved by the High Court, and will be binding on all shareholders if a voting threshold is met.
The court will decide whether to approve the proposed scheme only if the majority of creditors in number present and voting, holding at least 75 per cent in the value of the debt claims, agree to it.
Stratech said in an exchange filing on Sunday that two meetings with creditors of the firm and its indirect subsidiary, Stratech Systems, were held last Friday.
At the first meeting, only 21 per cent in value and 33 per cent in the number of secured creditors approved the scheme, while 35 per cent in value and 71 per cent in the number of unsecured creditors were in favour of it. At the second meeting later that day, 74 per cent in value and 67 per cent in the number of unsecured creditors gave the go-ahead for the proposed scheme of arrangement.
The group said it is now "in consultation with its advisers as to the next steps and courses of action to take and will provide updates as soon as practicable".
Stratech has been suspended from trading since last August over unresolved repayment of loan, payroll and Central Provident Fund issues.
The counter last traded flat at 6.6 cents on Aug 1 last year.