One North (formerly RGM Media) expected to resume trading
One North Entertainment (formerly known as RGM Media) is expected to begin trading again after creditors approved a deed of company arrangement (DOCA) earlier this month.
One North, which sprang from the well-known RGM talent agency business, listed on the Australian Securities Exchange in 2010 after raising just over $4 million from investors. However, its ambitious plans to expand into film and television produciton, initially centred around a sequel to surf hit Point Break, foundered as it ran into financial difficulties. It appointed a voluntary administrator on July 2.
On August 6, the company's creditors approved plans for the company to execute a DOCA – an agreement between the company and creditors aimed at reviving the business or maximising returns for creditors, according to voluntary administrators Lawler Draper Dillon Chartered Accountants.
The DOCA is expected to be executed within 15 business days of a second – and final – meeting of creditors on August 27. Control of the company will then return to the directors, who are then expected to take the necessary steps to lift the ASX trading suspension.
The most valuable component of the business – the talent agent division – has not formed part of the administration or the DOCA. One North directors made the controversial move to dispose of the company's interest in subsidiary RGM Group Pte Ltd to litigation funding business Special Situations Pty Ltd (LFF) in return for settling all of One North's legal fees. The decision was aimed at ending an ongoing legal dispute between RGM Group Pte Ltd and the Singaporean Media Development Authority.