On Digital Media (ODM) - parent company of TopTV, which recently rebranded as StarSat - has confirmed the two shareholders that threatened legal action against the company have withdrawn their case.
"On Friday, First National Media Investment Holdings (FNMIH) and Mergan [Atchuthanandan] Moodley withdrew their urgent application to the South Gauteng High Court, which sought to interdict and prevent the business rescue practitioner of ODM, Peter van den Steen, from taking steps to implement the business rescue plan," ODM said in a statement.
Last month - ahead of the conclusion of a year-long business rescue process - the two shareholders attempted to thwart the re-launch of TopTV under equity partner, Chinese firm StarTimes.
Both FNMIH and Moodley held minority stakes in ODM - being 20.4% and 0.7% respectively. However, it is understood their interests in the broadcaster have since been shed.
According to ODM, the only issue still outstanding in the urgent application is that of the liability for ODM's legal costs arising from the withdrawal of the claims. Judgment on this issue has been reserved until Monday, 11 November.
ODM says it is pleased by the decision to withdraw the urgent application - filed on 18 October - as it believed the shareholders' case had "no credible merit to start with". The company says the application started to undermine the outcome of a successful rescue, that it caused unnecessary delays and had wasted company resources. "Unfortunately, the time wasted on the opposition of the application cannot be recovered."
Van den Steen, ODM's appointed business rescue practitioner, says: "Since the adoption of the business rescue plan, we have been acutely aware of the challenges we were going to be faced with and have adequately dealt with any concerns arising from the implementation of the business rescue process."
He says it is "unfortunate" that two of ODM's seven shareholders chose the courts to voice their dissatisfaction. "I remain committed to the implementation of the rescue plan and the return of ODM to a state of solvency."
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