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National Post and Toronto Sun newspaper boxes outside the National Post offices in Toronto.Fred Lum/The Globe and Mail

Postmedia's shareholders and debt holders have approved the media conglomerate's proposal to restructure its $648-million debt.

In July, the company announced a plan to slash its debt by nearly half by exchanging a large portion of its debt for shares.

Under the plan, Postmedia's second lien debt holders will exchange the roughly $345-million they are owed for a 98 per cent stake in the company. Current shareholders will be left with a two per cent stake.

The company will also issue about $110-million worth of new second lien notes that mature in July 2023.

Postmedia also plans to repay $78-million of its first lien debt and will be granted a four-year extension that gives it until July 2021 to repay the outstanding $225-million.

At separate meetings Wednesday, 100 per cent of the votes cast by the company's first lien debt holders, 100 per cent of the votes cast by second lien debt holders and 99.9 per cent of the votes cast by shareholders were in favour of the restructuring plan.

The votes represented about 95 per cent of first lien debt holders, about 80 per cent of second lien debt holders and about 93 per cent of outstanding shares.

For the plan to be approved, two-thirds of the votes cast at each meeting had to be in favour of it.

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