NEW YORK, June 29, 2012 /PRNewswire/ -- The New York State Supreme Court has granted a motion that requires VisionChina Media, Inc. (Nasdaq: VISN) and its subsidiary, Vision Best Ltd., to transfer $60 million of assets into New York State so that those assets can be attached by a New York sheriff or, with the consent of Oak Investment Partners and Gobi Partners, into an escrow account elsewhere controlled by a New York sheriff.
The motion, which was granted by the Hon. Charles E. Ramos on June 28, 2012, enforces and implements the judge's June 15, 2012 decision that confirmed Oak and Gobi's motions to attach $60 million of VisionChina and Vision Best's assets, regardless of where those assets were located. The requests for attachment were filed to secure VisionChina and Vision Best's final payments for Digital Media Group (DMG), a high-profile digital media company that they acquired from Gobi and Oak in 2010.
Oak and Gobi plan to pursue additional damages in connection with VisionChina's breach of its agreements to complete the purchase of DMG. Oak and Gobi believe that the total damages as a result of VisionChina's conduct exceed $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 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.