Court Confirms Oak and Gobi's Right to Attach $60M of VisionChina and Vision Best Assets

The New York State Supreme Court has confirmed Oak Investment Partners and Gobi Partners' motions to attach $60 million of VisionChina Media Inc. VISN and Vision Best Limited assets, regardless of where those assets are located. The requests for attachment were filed to secure VisionChina and Vision Best's final payments for a high-profile digital media company that they acquired from the investment funds in 2010. In his June 15, 2012 ruling, Justice Charles E. Ramos also granted Oak and Gobi's motion to undertake discovery in aid of the asset attachment. The Court also significantly limited the arguments that VisionChina can make going forward in defending against Oak and Gobi's breach of contract claims. In response to the order, Mindy Morton, a partner at Bergeson, LLP and counsel for Oak and Gobi stated that, "We are gratified that the Court limited VisionChina's defenses and we now have the ability to attach $60 million of VisionChina's assets regardless of where they are located." Oak and Gobi plan to pursue additional damages in connection with VisionChina's breach of its agreements to complete the purchase of Digital Media Group (DMG). Oak and Gobi expect total damages to be at least $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.