Jakarta, CNBC Indonesia – The issuer of a film production house, PT MD Pictures Tbk (FILM) has decided to dissolve PT The Mixx Entertainment which is an associated entity jointly owned by the company and entertainment company from Hong Kong, Xingxing (Hong Kong) International Investment Ltd.
This joint venture subsidiary was formed on February 15, 2011 and FILM will earn additional revenue from the sale of films and videos produced and distributed by this Mixx.
The Mixx Entertainment is engaged in the foreign film adaptation and distribution business. The Main Commissioner of the company is Manoj Dhamoo Punjabi who is also the owner of MD Pictures.
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“The company decided to disband The Mixx due to the impact of the Covid-19 pandemic,” said Venkatachari Soundararajan, Director and Corporate Secretary of FILM, in an information disclosure on the IDX, quoted on Tuesday (27/10/2020).
He said the decision to disband The Mixx was made at the Extraordinary General Meeting of Shareholders last August 24.
Last year, when this subsidiary was created, Venkatachari Soundararajan said that through the subsidiary that was formed, the company would get additional income from selling the films and videos it produces.
“Apart from that, the company will also play a role in the global film industry, one of which is by adapting foreign films and distributing them both in Indonesia and abroad,” he said, Tuesday (5/3/2019).
The authorized capital of Mixx Entertainment is Rp. 10 billion, the issued capital is also Rp. 10 billion, while MD Pictures’ capital ownership is Rp. 5 billion. MD Pictures took a 50% stake, while Xingxing (Hong Kong) held 50%.
The source of funds used by MD Pictures for the establishment of this joint venture subsidiary is from the proceeds from the initial public offering (IPO) on the IDX.
On August 7 2018, the issuer controlled by film personality Manoj Punjabi was officially listed on the IDX by obtaining funds of IDR 274.63 billion.
“The aim of the transaction is to absorb business opportunities by partnering with businesses at the international level in the growing film industry so that the company can produce, publish and distribute more quality and quality films or videos which in the end can achieve a larger market share both in Indonesia and abroad, said Venkatachari.
Prior to forming this joint venture, in February 2019, MD Pictures, through PT MD Retail Utama, collaborated with Anyone F&C Co., Ltd and also Xingxing to form a subsidiary, PT MIXX ONE Food and Beverage.
Default
On the occasion of a letter of response to the IDX, Venkatachari also explained the matter of the default lawsuit against the company by the Public Accounting Firm (KAP) Gideon, Adi & colleagues.
The background to the default lawsuit was due to a proposal for audit services which according to KAP Gideon had been agreed upon by MD Pictures but MD Pictures did not use KAP Gideon’s services, which had been decided by the South Jakarta District Court Number 883/Pdt.G/2018/PN.Jkt .Cell. with the result of the case decision that MD Pictures did not default.
“The current status of the default lawsuit is the process of appeal by KAP Gideon against the results of the court decision through appeals (relaas) for case Number 883/Pdt.G/2018/PN.Jkt.Sel which is currently still pending due to the pandemic. ” he explained.
The value of the default lawsuit, a material loss of IDR 1.138 billion and an immaterial loss of IDR 100 billion.
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