Calfrac Well Services Ltd. on Oct. 16 said its shareholders approved the oilfield services company's sweetened recapitalization plan to reduce debt, overriding a takeover bid from billionaire investor Wilks Brothers LLC.

The debt-ridden company, which rejected a hostile bid from Wilks Brothers last month, said most holders of its senior unsecured notes voted in favor of Calfrac's new plan to swap debt for equity.

Under the new plan, shareholders can either opt for 15 Canadian cents in cash and two warrants per common share or hold onto their shares and take the two warrants, which could be used to buy shares at 5 Canadian cents each over a three-year period.

Wilks Brothers, led by oil billionaires Dan and Farris Wilks, has been acquiring stakes in hard-hit services firms in the United States and has been trying to buy Calfrac's U.S. business since July. The company owns nearly 20% of Calfrac.

Earlier this month, Wilks Brothers raised its hostile bid for the oilfield services company to as much as 25 Canadian cents per share from a prior 18 Canadian cents, after Calfrac in September rejected the previous offer and said it was sweetening its recapitalization plan.

Calfrac remains in default of $431.8 million to senior unsecured noteholders.