Former Althea Group Holdings (AGH) chief executive Josh Fegan and director Alan Boyd have provided a $200,000 loan to fund a Deed of Company Arrangement for subsidiary Althea Company.
Creditors of the firm, which was placed into voluntary administration by AGH last month following the sale of its medicinal cannabis division to Tasmanian Botanics, voted in favour of the DOCA at a meeting on Wednesday.
Those creditors had previously filed claims with administrator Salea Advisory totalling as much as $3 million.
The terms of the DOCA see AGH lend up to $200,000 to Althea Company, with Fegan and Boyd having separately agreed to lend AGH that same amount to cover the funding.
The precise implications of the DOCA for creditors had not been made clear at the time of publication.
AGH emphasised that the DOCA applies only to Althea Company and "is not expected to have any material impact on AGH, nor does it affect AGH's ongoing operations under Peak Processing Solutions".