NEW YORK, Nov. 21, 2011 /PRNewswire/ -- Oak Investment Partners and Gobi Partners today filed a motion for partial summary judgment in the Supreme Court of the State of New York against VisionChina Media Inc. (Nasdaq: VISN) seeking a judgment of $60 million, plus interest, for VisionChina's failure to make $60 million in payments due for its 2010 acquisition of Digital Media Group Ltd. (DMG) from Oak and Gobi.
On Friday, November 18, 2011, a VisionChina Director was personally served with an Order of Attachment against VisionChina and a related entity for "no less than $30 million," pursuant to an order granted by New York State Supreme Court Justice Charles E. Ramos on that date.
The Order of Attachment states in part, "... it is ordered that the Sheriff of any County in the State of New York or Marshal of the City of New York attach property of the defendants VisionChina Media, Inc. and Vision Best any time before final judgment, by levy upon ...the tangible and intangible interests of ... VisionChina Media, Inc. ... all other tangible and intangible property of VisionChina, wherever located; personal property or upon any debt owed to VisionChina; ... any interest of VisionChina in real property within the Sheriff's or Marshal's geographical jurisdiction; and VisionChina's interests in accounts maintained by VisionChina in China Merchant Bank and Morgan Stanley as will satisfy the aforesaid sum of $30,000,000."
Oak and Gobi's motion for summary judgment states, in part: "No issue of disputed fact exists as to whether the Merger Agreement is valid or whether VisionChina owes the two $30 million installments that it refuses to pay ... VisionChina has already enjoyed the benefits of the Merger Agreement, having had control of DMG for over a year. Its only putative defenses to enforcement of the payment provisions were its baseless fraud allegations which have now been dismissed as a matter of law. Accordingly, Plaintiffs now respectfully request that the Court grant summary judgment on their claims for breaches of the Merger Agreement and enter judgment forthwith in the amount of $60 million, plus interest."Gobi and Oak plan to pursue vigorously additional damages caused by VisionChina in connection with VisionChina's breach of the parties' Merger Agreement and other related agreements.