The administrator of the ATM company, My ATM, has called a shareholder meeting to consider a proposal to recapitalise the company.The administrator, KordaMentha, has proposed a consolidation of existing issued shares, a reduction in share capital, an issue of shares to note-holders and an issue of new shares.My ATM went into administration in December last year, when the loss-making business ran out of funds.Under the terms of the proposal, A$11.4 million of accumulated losses would be applied against the share capital of the company. Existing securities in the company would be consolidated on a one-for-10 basis. New shares would be issued to investors Blackswan Equities Ltd and Blue Saint Pty Ltd, both of which hold convertible notes.Up to $2.5 million would be raised through the issue of new shares under a prospectus.Finally, all existing claims against the company would be released, with creditors' claims only being able to be met from funds held in a trust fund.KordaMentha said in an explanatory statement issued yesterday that if shareholders reject the recapitalisation proposal "it is probable that the company may proceed into liquidation".