ODM shareholders withdraw writ

The two South African shareholders who had commenced a legal action against the planned sale of On Digital Media (which traded as TopTV) have withdrawn their writs.

“On Friday, First National Media Investment Holdings (FNMIH) and Mergan 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.

According to ODM, the only issue remaining in the action is the question of ODM’s legal costs arising from the withdrawal of the claims. Judgment on this aspect has been reserved until November 11th.

ODM says it is pleased by the decision to withdraw the action – filed on October 18th – 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.”

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