Thornburg also reported a $3.31 billion loss in the first quarter.

The company has struggled amid a spike in defaults on the "jumbo" loans it originates, which are larger than $417,000. It was forced to sell some of its assets and later raised $1.35 billion in capital by issuing options to buy shares for a face value of a penny apiece.

"Winning shareholder approval of management's proposals marks a milestone achievement in our efforts to rebuild the company and resume more normal business operations," said Chief Executive Larry Goldstone in a statement.

Holders of the company's preferred shares must still vote on the move.

Shares of Thornburg rose 3 cents, or 4.2 percent, to close at 75 cents.