Train TV buyer to renegotiate deal

A business that bought a Vision Media subsidiary two months before the group went into administration is attempting to renegotiate the terms of the deal.

RAM Investments, a London-based vehicle for investing in digital media companies, bought 49.9% of Vision Media’s Train TV business in May.

At the time the deal was heralded as a life-saver for Cheadle-based Vision Media which had resorted to raising cash from friends and family.

RAM paid £920,000 – with £785,000 in cash and the rest in shares –  for its stake in the business which runs TV services on commuter trains.

It also took an option to acquire the rest of the shares by August 31 for £1.27m in cash and shares.

It is now attempting to renegotiate these terms with administrators who took on the business on Wednesday.

RAM’s executive director Tim Baldwin confirmed he was in talks with administrators but would not comment when asked if he was seeking more favourable terms.

Vision Media, which operated interactive advertsing screens in shopping centres, said a worsening cash flow crisis and an inability to raise funds had forced the business into administration.