NEW YORK, Aug. 15, 2012 /PRNewswire/ -- The New York State Supreme Court has issued a written order requiring VisionChina Media, Inc. (Nasdaq: VISN) and its subsidiary, Vision Best Ltd., to transfer $60 million into New York State by August 21, 2012 where the money will be held in the custody of the New York City's Sheriff's office or deposited into an escrow account controlled by the Sheriff.
The Court order is the latest in a series of legal victories for Gobi Partners and Oak Investment Partners in their legal campaign to ensure that VisionChina and its subsidiary comply with their contractual obligation to pay for their acquisition of Digital Media Group (DMG).
Oak and Gobi plan to pursue additional damages against VisionChina and its subsidiary and believe that the total damages, initially estimated at more than $90 million, now exceed $100 million as a result of the company's refusal to pay Oak and Gobi for the DMG acquisition.
VisionChina acquired DMG from Gobi and Oak in January 2010, pursuant to a Merger Agreement that required VisionChina to make an initial payment of $100 million in cash and stock and two deferred payments of $30 million each over the next two years. DMG operated China's leading digital media network inside subway systems consisting of over 34,000 digital screens in 32 subway, high-speed train lines and bus shelters.
VisionChina failed to make the two deferred payments, totaling $60 million. The Court's latest decision ensures that the funds will be available to Gobi and Oak should a final ruling uphold their claim to the payments.
The case, Shareholder Representative Services, LLC, et al. v. VisionChina Media Inc., et al, was filed in the Supreme Court of the State of New York, New York County, index # 650526/2011. There is also a related case, VisionChina Media Inc., et al., v. Shareholder Representative Services, LLC, et al., index # 652390/2010.
About Oak Investment Partners
Oak Investment Partners is a multi-stage venture capital firm. The primary investment focus is on high growth opportunities in Broadband Internet and Wireless Communications, Information Technology and Software Outsourced Services, Consumer Internet/New Media, Financial Services Technology, Healthcare Information and Services, Clean Energy, and Retail. Over a 33-year history, Oak has achieved a strong track record as a stage-independent investor funding more than 495 companies at key points in their lifecycle. Oak has been involved in the formation of companies, funded spinouts of operating divisions and technology assets, and provided growth equity to mid- and late-stage private businesses and to public companies through PIPE investments.
About Gobi Partners
Founded in 2002, Gobi Partners is a venture capital firm with its headquarters and incubation centre in Shanghai and additional offices in Beijing , Hong Kong , and Tianjin , as well as an overseas office in Singapore. A leading investor in early stage digital media and technology companies in Greater China, Gobi manages four funds with over $300 million under management. Since its establishment, Gobi has funded dozens of early to traction stage companies and continues to invest actively in the region.
SOURCE Gobi and Oak