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 morning, the company’s first lien debt holders, second lien debt holders and shareholders voted in favour of the restructuring plan.

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

Postmedia said it had the support of about 80 per cent of its first and second lien debt holders and about 75 per cent of shareholders when it announced the plan.