This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Court Confirms Oak And Gobi's Right To Attach $60M Of VisionChina And Vision Best Assets, Wherever Those Assets Are Located, In Connection With VisionChina's Failure To Pay For 2010 Acquisition; Total Damages Could Exceed $90 Million

NEW YORK, June 18, 2012 /PRNewswire/ -- The New York State Supreme Court has confirmed Oak Investment Partners and Gobi Partners' motions to attach $60 million of VisionChina Media Inc. (Nasdaq: VISN) and Vision Best Limited assets, regardless of where those assets are located.  The requests for attachment were filed to secure VisionChina and Vision Best's final payments for a high-profile digital media company that they acquired from the investment funds in 2010.

In his June 15, 2012 ruling, Justice Charles E. Ramos also granted Oak and Gobi's motion to undertake discovery in aid of the asset attachment.  The Court also significantly limited the arguments that VisionChina can make going forward in defending against Oak and Gobi's breach of contract claims. 

Justice Ramos states in his ruling that "It is undisputed that VisionChina failed to remit the Deferred Payments."  The Court found that Oak and Gobi "have met [their] initial burden of establishing that VisionChina breached the Merger Agreement" between the parties, but Justice Ramos declined to grant summary judgment due to "triable issues of fact" with regard to the affirmative defense asserted by VisionChina. 

In response to the order, Mindy Morton, a partner at Bergeson, LLP and counsel for Oak and Gobi stated that, "We are gratified that the Court limited VisionChina's defenses and we now have the ability to attach $60 million of VisionChina's assets regardless of where they are located."

Oak and Gobi plan to pursue additional damages in connection with VisionChina's breach of its agreements to complete the purchase of Digital Media Group (DMG).  Oak and Gobi expect total damages to be at least $90 million.

VisionChina acquired DMG from the former shareholders of DMG 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.

On November 3, 2011, the Court dismissed VisionChina's principal claims and counterclaims for fraud, unjust enrichment, declaratory relief, and breach of contract against Gobi and Oak.  The Court's June 15 decision confirms two $30 million ex parte orders of attachment that were granted to Oak, Gobi and Shareholder Representative Services, LLC on November 18 and 29, 2012.

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, Visionmedia Inc. v. Shareholder Representative, index # 652390/2010. 

About Oak Investment Partners

Oak Investment Partners is a multi-stage venture capital firm based in the United States, with offices in Palo Alto, California, and Norwalk, Connecticut. Oak's 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 475 companies at key points in their lifecycle.

About Gobi Partners

Founded in 2002, Gobi Partners is a venture capital firm with its headquarters and incubation center 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 Oak Investment Partners and Gobi Partners

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,214.42 -10.15 -0.06%
S&P 500 2,110.74 -3.12 -0.15%
NASDAQ 4,987.89 +20.7530 0.42%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs