Troubled streaming service Quickflix is trying to restructure shares in the company which are held by rival Stan and, it says, are blocking new investment.
Quickflix said Stan's redeemable preference shares rank ahead of ordinary shareholders with respect to dividends and capital returns, and have been a significant roadblock in attracting new investors.
"In order to progress its restructure and raise new capital Quickflix is seeking to reach agreement with Stan for the immediate restructuring of the RPS," it said in a statement.
The struggling business has been looking to raise fresh capital after undertaking a major restructure last year to remove costs and cut content deals that were not delivering returns.
Its service has been severely impacted by the entry of US giant Netflix into the Australian market last year.
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The cash-starved company's partnership deal with local rival Presto fell through last year, and another tentative deal to buy a Chinese film and TV company also failed to eventuate.
It has recently restructured $7.5 million worth of dues to content providers.
Quickflix said the preference shares, valued at $11.65 million, were issued to US cable network HBO in 2011, but were acquired by Nine Entertainment in July 2014. Nine subsequently transferred the shares to its Stan joint venture with Fairfax Media.
Quickflix shares have been suspended from trade since last August, and last traded at 0.1 cents.
