VisionChina Media Responds to Contempt Ruling of New York Supreme Court
BEIJING, Jan. 8, 2013 /PRNewswire/ -- VisionChina Media Inc. ("VisionChina Media" or the "Company") (Nasdaq: VISN), one of China's largest out-of-home digital television advertising networks on mass transportation systems today announced that on Monday, January 7, 2013, the New York State Supreme Court issued an order of civil contempt against VisionChina Media, Inc. and Vision Best Limited (collectively, "VisionChina") for their failure to comply fully with an August 13, 2012 turnover order requiring VisionChina to post security in connection with prejudgment orders of attachment totaling $60 million.
Justice Charles E. Ramos of the New York State Supreme Court issued an order of civil contempt against VisionChina in the case entitled Shareholder Representative Services LLC, et al, v. VisionChina Media Inc. et al. The ruling, after a brief hearing, was based on the judge's finding that VisionChina had failed to comply fully with an August 13, 2012 turnover order requiring VisionChina to post security in connection with prejudgment orders of attachment totaling $60 million. The turnover order required VisionChina to pay that amount to the New York City Sheriff or enter into an escrow of the funds in the People's Republic of China or alternative security arrangement acceptable to plaintiffs. Although VisionChina arranged to transfer to the Sheriff most of the assets of its subsidiaries located outside the PRC (almost $4.5 million), VisionChina had advised the judge that it was not able to transfer additional assets held by its PRC subsidiary because of restrictions of the PRC's State Administration of Foreign Exchange.
The contempt sanction is a fine of $250 plus payment of the plaintiffs' attorneys' fees incurred on the contempt application. The amount of the fees is unknown at this point. Plaintiffs are required to submit an affidavit of services detailing the amount of their fees, and VisionChina will have an opportunity to object and respond to that.
VisionChina has appealed from the August 13, 2012 turnover order and the prejudgment attachment orders. Its appeals will be argued in the New York State Court's Appellate Division on January 15, 2013. VisionChina will also continue to vigorously pursue its appeal to revive its affirmative claims against Gobi Partners and Oak Investment Partners for fraud and other relief.
About VisionChina Media Inc.
VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home advertising network on mass transportation systems, including buses and subways. As of September 30, 2012, VisionChina Media's advertising network included 107,821 digital television displays on mass transportation systems in 19 of China's economically prosperous cities, including Beijing, Guangzhou and Shenzhen, as secured by exclusive agency agreements or joint venture contract. VisionChina Media has the ability to deliver real-time, location-specific broadcasting, including news, stock quotes, weather and traffic reports, and other entertainment programming. For more information, please visit www.visionchina.cn.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates" and similar statements. Among other things, the quotations from management in this press release contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its registration statements on Form F-1 and its annual reports on Form 20-F. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
For investor and media inquiries, please contact:
Ms. Sharon Wu
VisionChina Media Inc.
Mr. Colin Wang
Investor Relations Director
VisionChina Media Inc.
Tel: +86 135-1001-0107
In the United States:
Ms. Jessica Barist Cohen
Ogilvy Financial, New York
SOURCE VisionChina Media Inc.