On Tuesday (30 April) the shareholders and creditors of On Digital Media (ODM) held a meeting to decide on the best way forward in the battle to save struggling paycaster TopTV.
The meeting culminated in a vote by stakeholders who decided to accept a proposal submitted by StarTimes. Their proposal includes a turnaround plan to save TopTV which all parties have to commit to for at least three years.
StarTimes is a China-based technology company who put forward a proposal that they'd buy a 20% stake in TopTV as part of a Rescue Plan. The company is a key player in the Chinese pay TV market and was granted the first digital TV operator license in Rwanda about 15 years ago. They currently have licenses in 10 African countries.
The company specialises in digital signals and content acquisition so we assume that they'll be bringing these to the table as part of the turnaround plan.
For more about them and a look at the content on their platforms elsewhere, take a look at their website:
StarTimesTheir rescue proposal was accepted by the ODM stakeholders by the end of yesterday's meeting and in the evening the broadcaster sent out this statement which was compiled by the legals representing on the day:
[Submitted via press release]
Press Release on the business rescue proceedings of On Digital Media Proprietary Limited trading as TopTV (“TopTV”).1. Peter van den Steen, in his capacity as business rescue practitioner of TopTV, presided over a meeting today in terms of section 151 of the Companies Act No.71 of 2008, for the purpose of considering a business rescue plan incorporating a proposal by Star Communication Technology Co. Ltd (known as “Star Times”) to creditors in respect of their claims and a turnaround plan to restore TopTV to a solvent future for a minimum of the next three years (the “Rescue Plan”).
2. The Rescue Plan was preliminarily adopted by an overwhelming majority of 93.9% of creditors that voted, of which 52.9% represented independent creditors’ voting interests.
3. The Rescue Plan was thereafter finally adopted by a unanimous vote of preference shareholders (100% in favour) and a majority vote of ordinary shareholders (99.3% in favour).
4. The Rescue Plan is now binding on TopTV, the creditors and all shareholders, whether or not such person was present at the meeting. Mr Van den Steen is now required to take all necessary steps to satisfy all creditors and implement the adopted Rescue Plan.
5. Within the past two business days, two unsolicited expressions of interest were received by Mr Van den Steen. The salient terms of the expressions of interest were presented during the meeting, after which creditors and shareholders were invited to discuss the Rescue Plan. Upon the conclusion of that discussion, and a break to enable creditors and shareholders to obtain approvals and mandates, the Rescue Plan was voted and finally adopted by the creditors and shareholders of TopTV.