MGX`s creditors have agreed to accept convertible loan notes in settlement of their claims against the company.
The group says the majority of creditors voted this week in favour of resolutions relating to the scheme of arrangement proposed by MGX.
In doing so, they accepted secured interest-bearing redeemable convertible loan notes to be issued by the group in an amount equal to the face value of their claims against MGX.
MGX announced last November that it was restructuring its debt and its operations and planned to delist from the JSE.
A high debt burden, deteriorating trading performance and legal disputes brought MGX to near collapse last year, but this was averted through the support of a consortium of the group`s bankers.
Once the operational restructuring is complete, MGX will be left with only its Metrofile subsidiary and the group will be renamed accordingly.
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