According to the U.S. Bankruptcy Court docket, Local Corporation filed a motion for an order approving a stipulation between the Company and Online Equity Ventures (OEV) for the allowance of a claim in favor of OEV.
The motion explains, “Pre-petition, the Debtor and OEV entered into a Local Network Master Services Agreement and XML Feed Service Order, which set forth, among other things, the terms under which OEV would provide to the Debtor click through advertising, and in exchange, the Debtor would pay to OEV a certain percentage of revenue that the Debtor generated from the Services. OEV asserts that, under the Contract, it is entitled to $2,431,644.69 (the ‘Disputed Revenue’) for the year 2014 which amount OEV further asserts that the Debtor refused to pay in violation of its obligations under the Contract.”
The motion continues, “Post-petition, the Parties have reviewed and shared their respective positions relative to the Dispute. To avoid the expense of litigation, the Parties have determined that it is in each best interest and, in the case of the Debtor, that it is in the best interests of creditors of the Debtor’s estate, to resolve consensually the Dispute…OEV shall be allowed a general unsecured, non-priority claim against the Debtor’s estate fixed in the amount of $1,856,020 on account of the Services provided, pre-petition, by OEV to the Debtor (the ‘Allowed OEV Claim’). The Allowed OEV Claim shall receive in this case the same treatment as all other allowed general unsecured, non-priority claims in the Debtor’s case, subject to Court approval. Furthermore, upon Court approval of the OEV Settlement, the Allowed OEV Claim shall not be subject to revocation or reconsideration.”
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