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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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05.01.2011
Vienna Stock Exchange listed JoWooD Entertainment AG (ISIN AT0000747357) today
filed a law suit against KOCH Media GmbH demanding payment of an amount of EUR
2.36 million plus interest.
JoWooD asserts that the accounts receivables, which were contributed by KOCH
Media GmbH as an in kind capital contribution in the course of JoWooD's capital
increase in January 2006, were overvalued: In that capital increase JoWooD had
issued a total of 6.4 million new shares to KOCH Media GmbH for an aggregate
issue price of EUR 6.4 million. However, the accounts receivables contributed by
KOCH Media GmbH in exchange for those newly issued shares had, according to
calculations made by JoWooD and confirmed by an accounting firm, a value of only
EUR 4.04 million. In its law suit filed with the Commercial Court Vienna, JoWooD
therefore claims an amount of EUR 2.36 million (plus interest) representing the
difference between the aggregate issue price of the newly is-sued shares and the
value of the contributed accounts receivables. JoWooD's claim is based on the
Austrian corporate law principle according to which any person that contributes
assets to a corporation by way of a contribution in kind and receives newly
issued shares in exchange therefor shall be liable for any shortfall in the
value of the contributed assets irrespective of fault (Differenzhaftung des
Sacheinlegers). With a view to JoWooD's strained financial situation and based
on corporate law considerations, the company's management board today decided to
file the law suit in the company's and its shareholders' interest.
Despite the uncertainties that are always involved when filing a claim in court,
JoWooD believes that its claim is justified. JoWooD expects that a final court
decision will be rendered only after tedious proceedings that could last for
several years. The outcome of the proceedings will not affect the effectiveness
of JoWooD's January 2006 capital increase against contribution in kind.
Further inquiry note:
JoWooD Entertainment AG
Ing. Mag. Franz Rossler, Vorstand
Mag. Philipp Brock, Investor Relations
Tel.: +43 (0)1 37909
mailto:investor@jowood.com
http://corporate.jowood.com
end of announcement euro adhoc
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issuer: JoWooD Entertainment AG
Heiligenstädter Straße 201-203 / Top 19
A-1190 Wien
phone: +43 (0)1 37909-0
FAX: +43 (0)1 37909-1064
mail: investor@jowood.com
WWW: http://www.jowood.com
sector: Software
ISIN: AT0000747357
indexes: WBI, ViDX, mid marketstockmarkets: free trade: Berlin, Frankfurt, Stuttgart, München, Regulated free
trade: Wien
language: English
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