Who was the client?
Agio Legal provided legal services to the consortium of the Auro Group and Galaxy Studios. The Galaxy Studios group on the one hand is a cluster of companies, all dedicated to film, music and audio technology. Besides the Galaxy group, there is also the Auro Group. It developed pioneering ‘immersive’ sound technology (the next generation of ‘surround’ sound). The ‘Auro 3D’ invention was developed in the applicant’s studios in 2005 and was launched on the market in 2010. The Kempen company has become one of the very best players in the 3D Audio market worldwide.
What was the client’s challenge?
The first challenge concerned the specific niche and market in which the client operates. In addition, the client’s product involves high development costs. Therefore, the client was looking for investors to commercialise its product.
Following a dispute with a competitor, Dolby, which was highly integrated in the US market, the client was de facto foreclosed from this market. As a breakthrough in the US market proved effectively impossible, it set its sights on the Asian market. However, due to the Covid-19 crisis, many prospective Asian investors dropped out.
Commercialisation of the product thus failed to materialise, as did the necessary revenue. These problems also prevented the client from complying with credit repayments and, consequently, the banks also balked.
What solution did we come up with for the client?
Agio Legal assisted the client through the court, judicial reorganisation proceedings and out of court. Several restructuring processes were implemented.
Given the problems with the banks, Agio Legal also conducted negotiations with the banks to restore calm.
