Shareholders in stricken café business Patisserie Holdings are understood to have backed a £15m rescue package.
The owner of the Patisserie Valerie chain is holding an extraordinary general meeting in London and according to reports, more than 99% of shareholders have voted in favour of the cash injection.
Under the deal, £15m new shares will be issued to private investors in a deeply discounted rights issue.
But despite backing the plan, many shareholders at the meeting were angry and grilled chairman Luke Johnson. In particular, they remain unhappy that new investors will be able to buy into the business at such a discount.
Last month Patisserie Valerie announced it had found a £40m black hole in its accounts and that it faced collapse. Johnson, who is the Aim-listed firm's biggest shareholder with a 37% stake, stepped in to keep the company going by providing loans totalling around £20m.
Finance director Chris Marsh was suspended and then resigned after being arrested by police, and the Serious Fraud Office is investigating.
Shares in Patisserie Valerie have been suspended and management has yet to indicate when trading will resume. Management also said on Thursday that it would not provide further detail on the accounting scandal at the meeting.
“The board is responding to enquiries from multiple regulators and authorities and the outcomes of which are expected to take some time. In order not to prejudice these investigations, the company will be restriction at the meeting from answering specific questions in relation to these events.”