Wasabi Energy (LON:WAS, ASX:WAS) has called for shareholders to approve a rescue plan for the company.
The company, which is in voluntary administration, has called a meeting for shareholders to vote on resolutions that will see the company's debts reduced and will also allow for around A$1mln of new funds to be lent into the company on a secured basis, ahead of a rights issue that is expected to be launched in the second quarter of 2014.
These funds will allow the company to continue to operate while it attends to monies owed to creditors.
The directors are working on a rebirth of the company that would see it focus on industrialisation of its Kalina Cycle technology, with the company intellectual property consolidated into a new subsidiary.
The subsidiary will be specifically focused on building commercial relationships with global engineering, procurement and construction companies, with the objective of achieving near-term scalability of the technology.