SPECIALIST cleaning group Proventec hopes to make a return to the alternative investment market next month after a refinancing deal was approved.

Shares in the Rodney Street-based group, which develops cleaning systems to tackle hospital superbugs such as MRSA, were suspended on June 21.

The company took the decision after talks to secure more funding to meet a £600,000 interest payment on loan notes had broken down.

It said at the time that the board was considering its options, including the possibility of administration.

However, majority shareholder InnoConcepts NV agreed to a debt for shares swap, which was approved at a court meeting yesterday.

Proventec said it hopes the scheme of arrangement will now become effective on December 7, which should see a return to dealing in its stock and the release of its results for the 18 months to September 30 after a change to its accounting period due to the length of its refinancing negotiations. In a statement issued after the court meeting, the company said: “The approval from the note holders and shareholders at today’s meeting mark a major milestone towards the successful reconstruction of the company’s balance sheet, which, upon its conclusion, will see the company emerge with a stable financial platform from which to drive forward its business streams.

“The company would like to take this opportunity to thank all its stakeholders, including its customers, suppliers and employees, for their ongoing support during this process.”

Chief executive David Chestnutt revealed earlier this year that Proventec’s cashflow problems had been worsened by delays in payments by some of its customers.

When talks opened with Innospec NV, it held more than 75% of the company’s £15m of loan notes.

The share swap agreement will leave Proventec with about £7m of debts.

It will also enable the firm to use £1.5m of a £2.5m cash injection for growth.