ODM embroiled in yet another lawsuit; Industrial Development Corporation demands more than R750 million back from ODM shareholders.

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.

TopTV aims to publish a business rescue plan for the struggling South African pay-TV operator by the end of March.

The struggling On Digital Media (ODM) running the TopTV pay-TV platform in South Africa which is currently in business rescue and and is urgently looking for cash, aims to publish a business rescue plan by the end of March.

About R1,4 billion has been sunk into the Woodmead based pay-TV business which launched its commercial service almost three years ago in May 2010.

Since then ODM has become "financially distressed" and its major shareholders, the Industrial Development Corporation (IDC) and The National Empowerment Fund (NEF) are no longer prepared to inject any further funding into ODM.

Neither were prepared to extend a bridging fascility to ODM to enable it to operate within the "protective bubble" of business rescue as the pay-TV operator tries to restructure itself and attempt to prevent liquidation.

During December 2012 ODM's business rescue practitioner, Peter van den Steen, was approached by three separate interested parties who expressed interest in acquiring an equity interest in ODM since the company entered business rescue under the Companies Act at the end of October 2012. One withdrew in January.

In February one of the parties sent a written formal offer, and Peter van den Steen received another two expressions of interest. TopTV's aim is now to publish a business rescue plan based on offer(s) received from successful bidder(s) by the end of March.

According to TopTV which is currently being led by the interim CEO Eddie Mbalo, discussions are "at an advanced stage" with an announcement which would be made soon.

This past Thursday at TopTV's public hearing before South Africa's broadcasting regulator, the Independent Communications Authority of South Africa (Icasa) to start a separate porn bouquet of channels, ODM told Icasa that it now has 250 direct employees.