The management proposed reducing the share equity by EUR 12.5m to EUR 3.1m to offset for part of last year's loss, and then increasing the share capital by up to EUR 16m through a new share issue.

But the proposal, which needed to be carried by a majority of at least 75%, was voted down at Wednesday's meeting due to opposition by small shareholders, which hold 28% in the company.

They argued that the management should have drawn up a loan modification agreement with the creditor banks instead of declaring the company's insolvency in August.

Thermana, which last year generated a loss of EUR 25.5m, is in their view headed for court-mandated debt restructuring after the Celje District Court recently halted the bankruptcy protection launched in March.