Save a last-minute glitch, the company that will take over the entire ODS Group including the insolvent Dassow CD/DVD production plant is London-based Spin Music Productions Ltd, set up by ex-ODS owner Wilhelm F. Mittrich.

Though the insolvency administrator Brinkmann & Partner still refuses to confirm the identity of the buyer, in a official announcement seen by DVD Intelligence dated 6 February, the directors of Spin Music Productions announce that their bid to acquire the ODS Group including the Dassow DVD/CD manufacturing operations was successful with the Creditors Committee at their 1 February meeting.

The search for a buyer for the insolvent manufacturing plant in Dassow – divested from the mother company ODS Group and renamed Vermoegensgesellschaft DVD Dassow – was a protracted affair, due in part to the requirement by local authorities to safeguard as many job as possible. Only three companies came forward.

After showing initial interest, Canadian replicator Cinram ended up not proceeding with a bid. Dutch manufacturing group MediaMotion was not interested in keeping the Dassow plant. It left Spin as the only bidder to safeguard some jobs. It is reported that 720 staff will keep their job out of a workforce of 1,100.

“The bid was supported by the workforce of Dassow, the workers council and local and regional governments as the best option to preserve jobs,” says Spin.

In order to “clear the deck” for a fresh start under a new company and management, the workforce had first to terminate its employment contract. With a heavy heart given that Mittrich was seen as the source of their hardship in the first place, 94% of the workers followed the recommendation of their union and resigned so as to be in a position to be hired again under new ownership.

The structure of the financial arrangements is yet to be agreed between the parties, something that should be done “over the coming days,” says Spin, pointing out that its directors are the owners of “100% of the share capital of Spin.”

Spin Music Productions is “represented” by Kevin Martin, CEO, Albert Fetouhi, COO, and Jesper Schertiger, Sales and Marketing Director Europe, all present members of what they call the “New ODS Management team.” The name of Wilhelm Mittrich does not appear in the company organigram. According to German newspaper Lubecker Nachrichten, Mittrich is barred until the end of this year from holding a directorship of a UK company in the wake of the collapse of music company Point Group, which he run in the mid 1990s, that left debts of £10 million.

ODS’s prized asset for the bidders is Universal Pictures International’s pan-European DVD manufacturing and distribution business, which the company acquired from Technicolor in November 2006. The Spiegel magazine reports that ODS secured the contract exclusivity for €6.8 million.

In the wake of the disruption caused by the insolvency procedure at its Dassow plant, thus not able to service its clients in house, ODS released them from their exclusivity clauses, letting them free to source products and services elsewhere.

It has been suggested to DVD Intelligence by some industry executives that a major video replicator is to acquire UPI’s DVD business and sub-contract the manufacture to Spin-owned ODS. In fact, the insolvency administrator seems to have made it a condition for Spin to win the bid that it receives cast-iron guarantees that a sub-contract deal has been struck with such a major replicator.

Spin says it has lined up “industrial and financial partners who have made themselves known to the Ministry of Economy” in a meeting held on 4 February. The management of Spin will take over the running of the ODS companies starting 1 March.

Spin promises further communication over the coming days “to allow our very valued customers a better understanding of the impact of the new situation.” The Creditors Committee’s decision to hand the assets of the former group to Spin, “gives it the opportunity to regain full control and to complete the planning for the long term prosperity of the ODS Group,” claims the company.

“This is just the news our customers needed, we are confident now in our position moving forward to service our business in the professional way we know how!” says Jesper Schertiger.

Story filed 11.02.08