By Greta Rosen Fondahn
(Reuters) -Shareholders in Viaplay approved on Wednesday a restructuring plan to rescue the Swedish streaming group from collapse while diluting the holdings of existing owners.
Under pressure to stabilise its business as rising living costs dent consumer demand, Viaplay in December said it would raise equity and restructure its debt, after repeatedly warning of a weakening business environment.
The owners on Wednesday voted in favour of the plan that involves raising 4 billion Swedish crowns ($391 million) in new equity, writing down 2 billion crowns in debt and renegotiating the terms of debt totalling 14.6 billion crowns.
"This means that the recapitalisation programme ... can progress according to plan," the company said in a statement.
Shares in the group rose 7% by 1034 GMT but have still fallen 97% in the last 12 months.
The company's recapitalisation plan involved an issue of 4 billion shares at a price of 1 Swedish crown each, a 96% discount to the closing price on Nov. 30 before the plan was announced.
New shares worth 3.1 billion crowns would be sold to specific investors via a directed issue and the remaining 0.9 billion crowns would come from a rights issue, the company said in December.
($1 = 10.2279 Swedish crowns)
(Reporting by Greta Rosen Fondahn; editing by Louise Rasmussen and Barbara Lewis)