Zip shareholders supported a series of resolutions at an extraordinary general meeting yesterday that will allow the company to complete a restructure of its convertible notes that will reduce its liabilities. In June, the company launched a proposal to convert A$330 million of zero coupon convertible notes into ordinary shares plus cash, and accept restructured notes that have 47.5 per cent of the face value of the outstanding notes. The company also launched a placement to raise $24.7 million of new equity, with the proceeds to be used to fund the cash incentive price under the conversion invitation and transaction costs. Zip said that at the end of the process net debt will be reduced by around $192 million. This followed a similar transaction in December, when Zip offered holders of $70 million of its convertible notes cash and shares in return for discounting the value of their notes. The $400 million of zero coupon convertible bonds were issued in April 2021 when the company was looking to expand. Since then, with the business in retreat, the convertible finance has been seen as a flaw in Zip’s capital structure. In her address to shareholders yesterday, Zip chair Diane Smith-Gander said these transactions have “fundamentally reset Zip’s balance sheet”.