VisionChina Media Inc. ("VisionChina
Media" or the "Company") VISN, one of China's largest out-of-home
digital television advertising networks on mass transportation systems today
announced that on Monday, January 7, 2013, the New York State Supreme Court
issued an order of civil contempt against VisionChina Media, Inc. and Vision
Best Limited (collectively, "VisionChina") for their failure to comply fully
with an August 13, 2012 turnover order requiring VisionChina to post security
in connection with prejudgment orders of attachment totaling $60 million.
Justice Charles E. Ramos of the New York State Supreme Court issued an order
of civil contempt against VisionChina in the case entitled Shareholder
Representative Services LLC, et al, v. VisionChina Media Inc. et al. The
ruling, after a brief hearing, was based on the judge's finding that
VisionChina had failed to comply fully with an August 13, 2012 turnover order
requiring VisionChina to post security in connection with prejudgment orders
of attachment totaling $60 million. The turnover order required VisionChina to
pay that amount to the New York City Sheriff or enter into an escrow of the
funds in the People's Republic of China or alternative security arrangement
acceptable to plaintiffs. Although VisionChina arranged to transfer to the
Sheriff most of the assets of its subsidiaries located outside the PRC (almost
$4.5 million), VisionChina had advised the judge that it was not able to
transfer additional assets held by its PRC subsidiary because of restrictions
of the PRC's State Administration of Foreign Exchange.
The contempt sanction is a fine of $250 plus payment of the plaintiffs'
attorneys' fees incurred on the contempt application. The amount of the fees
is unknown at this point. Plaintiffs are required to submit an affidavit of
services detailing the amount of their fees, and VisionChina will have an
opportunity to object and respond to that.
VisionChina has appealed from the August 13, 2012 turnover order and the
prejudgment attachment orders. Its appeals will be argued in the New York
State Court's Appellate Division on January 15, 2013. VisionChina will also
continue to vigorously pursue its appeal to revive its affirmative claims
against Gobi Partners and Oak Investment Partners for fraud and other relief.
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