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.
About Gobi Partners
Founded in 2002, Gobi Partners is a venture capital firm with
its headquarters and incubation centre 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 Gobi and Oak