TopTV in trouble

·13 Mar 2013

Digital TV operator TopTV continues to limp along as it awaits a further update on its survival status, expected within the next few days.

In November, the company, which is owned by On Digital Media, began business rescue proceedings as per the new Companies Act (under Section 129) in order to stay afloat financially while it searched for an equity partner.

However, interim CEO, Eddie Mbalo said that due to the competitive landscape locally, and the legislative requirements that allow a foreign entity only a 20% share in ownership, the process of finding an appropriate investment partner had proved to be challenging.

The company also underwent a business review last February, following the resignation of former CEO, Vino Govender.

In an update on the status of those proceedings, last month, TopTV said it “received a formal written conditional offer from one of the parties that initially expressed an interest in December 2012”.

ODM added that a further two separate expressions of interest had been received. The group said it would consider the offer and expressions of interest, along with its professional advisory team.

“A further report…will be circulated in early March (2013),” the report said.

A source close to TopTV told BusinessTech that the group is close to running out of funds, and will not be able to sustain its operations should any current potential deal fall through.

A spokesperson for TopTV said that a fresh report was due within the next few days, further rejecting the idea “to my knowledge” that the group may close down as soon as the end of the month.

The spokesperson however, acknowledged that some staff had left the group due to financial constraints.