The delayed launch of TopTV's HD digital TV offering, StarSat, looks set to be frozen further, with two of its parent company's shareholders launching a legal application to stop the deal - purported to save the struggling company.
This week, TopTV parent company On Digital Media's (ODM's) business rescue practitioner, Peter van den Steen, released documents informing creditors that an urgent application had been submitted to the South Gauteng High Court to stop the deal between StarTimes and ODM going through.
The application was submitted by First National Media Investment Holdings and Atchuthanandan Moodley - which hold minority stakes of 20.4% and 0.7% in ODM, respectively.
Plans and snags
This comes about a year after ODM voluntarily embarked on a business rescue process to save the country's second pay-TV operator, which has failed to gain a foothold in a market dominated by MultiChoice's DStv platform since it launched in May 2010.
Chinese digital pay-TV provider StarTimes, which has a significant presence in Africa, stepped up to become TopTV's critical equity partner, in May. Since then, little has been communicated around the new platform, or the pornographic package ODM was given the green light for, in April.
ODM was set to launch StarSat, its new and improved offering positioned as "high-definition TV via a standard decoder on a digital platform" last week, but - due to non-descript "regulatory issues" - subsequently said it hopes to launch within this year.
This followed reports out of Nigeria - one of the more than 10 African countries where StarTimes has presence - that the Chinese firm was flailing financially, and would have to withdraw investment in Africa.
The applicants, seeking an urgent interdict on the business rescue plan, are concerned about ODM's future should the proposed business plan fall through. Their intention is to appear in court next week, pending the outcome of ODM and its shareholders' answering affidavit - due today.
ODM had not commented by the time of publication, but Van den Steen indicated the company would give notice of intention to oppose the application "shortly". He also says updates on the status of the urgent application will be circulated regularly.
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