On Digital Media (ODM) has confirmed that the legal action threatened by two minority shareholders has been withdrawn.
ODM, stated that First National Media Investment Holdings (FNMIH) and Mergan Moodley withdrew their urgent application to the South Gauteng High Court which sought to interdict and prevent the business rescue practitioner of ODM, Peter van den Steen, from taking steps to implement a business rescue plan with Chinese firm StarTimes.
ODM, parent company of pay-television operator TopTV, announced at a media briefing on Thursday, 31 October 2013, that it would relaunch its pay TV satellite offering as “StarSat” – effectively killing of TopTV.
First National Media Investment Holdings (20.4%) and Atchuthanandan Moodley (0.7%) had a combined holding of 21.1% in ODM.
“ODM is pleased by this decision as it believed the application, filed on the 18 October 2013, had no credible merit to start with.”
“It started to undermine the outcome of a successful rescue, caused unnecessary delays and has wasted company resources. Unfortunately, the time wasted on the opposition of the application cannot be recovered,” the company said in a statement.
The only issue outstanding in the urgent application is that of the liability for ODM’s legal costs arising from the withdrawal of the claims, the group added.
Judgment on this issue has been reserved to 10h00 on Monday, 11 November 2013.
Peter van den Steen, the business rescue practitioner of On Digital Media said: “We welcome the move by FNMIH and Mr Moodley to withdraw the application.”
“Since the adoption of the Business Rescue plan we have been acutely aware of the challenges we were going to be faced with and have adequately dealt with any concerns arising from the implementation of the business rescue process.”
“It is unfortunate that two of ODM’s minority shareholders (there are seven shareholders in total) chose the courts to voice their dissatisfaction. I remain committed to the implementation of the rescue plan and the return of ODM to a state of solvency,” he said.