THE crisis-hit training firm Carter & Carter faces a do-or-die shareholders meeting in 12 days' time.
Investors have been asked to approve a change in the articles of association that will allow the group's borrowings to go to £175m, twice the level of a year ago.
If shareholders say no, "the board would be forced to seek the appointment of an administrator or pursue other insolvency proceedings shortly thereafter", a company circular said.
Carter & Carter has suffered a dramatic decline since its founder, Phillip Carter, died in a helicopter accident in May.
Shares in the company were above £12 shortly before he died. Two profit warnings after his death led to a collapse in the price. When trading in the shares was suspended in October they stood at 82½p.
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Last week's circular to shareholders painted a dire picture of the company's fortunes, saying "it is likely that the finalisation of the audit will result in a substantial write-down of goodwill".
This in turn would lead to a breaching of conditions on the amount of borrowing the company was allowed to take on.
If shareholders approve the change, the board, which is being advised by NM Rothschild, will present a restructuring plan before the end of February. This is likely to include a significant debt-for-equity swap, with shareholders seeing the value of their holdings slashed.