The beleaguered On Digital Media (ODM) is embroiled in yet another lawsuit, this one the Industrial Development Corporation (IDC) which invested in the struggling South African satellite pay-TV operator, seeking more than R750 million back from certain ODM shareholders.
Meanwhile other shareholders have decided to take ODM to courtin another court case involving the satellite pay-TV operator, demanding a stop to the further implementation of the StarTimes business rescue plan and seeking an urgent court interdict to prevent permanent changes to the floundering Woodmead based operation which launched its unsuccessful TopTV service just over three years ago in May 2010.
The Industrial Development Corporation, a stakeholder in ODM which has pumped hundreds of millions of rands into ODM, is sueing three of ODM other major stakeholders, Red Gold Investments, First AOne Trade & Invest and First National Media Investment Holdings (FNMIH) after ODM was placed in business rescue at the end of 2012.
Red Gold Investments, First AOne Trade & Invest and FNMIH had a combined 58,9% stake on ODM when the struggling pay-TV business filed for business rescue.
The IDC wants R293 million from FNMIH and certain of its investors, R161,8 million from First AOne Trade & Invest and R147,2 million from Red Gold Investments.
ODM planned to relaunch TopTV as StarSat last week with around 90 TV channels including a new StarTV set of channels. The plan had to be scuppered and was postponed to November, but embroiled in litigation, might be pushed even later in 2013 or to early 2014.
TopTV shareholders at the end of April voted for a StarTimes bail-out with the Chinese media conglomerate which would get a 20% stake or an effective economic interest of 65% in ODM.
South Africa's broadcasting regulator, the Independent Communications Authority of South Africa (Icasa) still has to approve the deal since it relates to a massive change in the direct foreign stake holding and composition of the company.
