Golf and country club operator, Clubhaus, has warned it may be forced to start insolvency proceedings if shareholders don't approve the company's proposed debt restructuring.

The proposals were agreed in principal back in February, but Clubhaus has now issued circulars urging shareholders to vote in favour of the deal, which will see bondholders swap £45m of the £60m they are owed, plus the £7.5m in unpaid interest, for 80 per cent of the equity. Preference shareholders would own nine per cent of the share capital with ordinary shareholders retaining the remaining 11 per cent.

The proposed restructuring would allow the company to continue trading and to expand its UK country clubs concept, which it considers an attractive investment opportunity. Clubhaus chairman, Robert Bourne, says he will stand down to become a non-executive chairman if the proposals go ahead.

The news comes as Clubhaus announced losses of £102.3m in the nine months to 30 September 2001. Voting will take place at an Extraordinary General Meeting to be held next month (May 02).