7Digital wins €4m settlement from Juke

Digital music solutions outfit 7Digital has reached a settlement agreement with Juke Entertainment over outstanding contracts and commitments relating to the Juke music service.

Juke, a wholly owned subsidiary of Media-Saturn-Holding, will make an immediate payment of €4m to 7Digital and has also agreed to write off all interest payments and £250,000 of the principal amount of a convertible loan note issued to Juke.

7Digital will cover the £500,000 balance of the convertible loan note with the proceeds of the agreement, while the remaining net proceeds will be applied for general corporate purposes.

Chief executive Simon Cole said he was extremely pleased to put the period of uncertainty behind him.

Cole said: "Whilst we would have preferred not to have been in this position, we are very satisfied with the settlement.

The immediate injection of cash will allow us to restructure our overhead base and reposition the company for continued growth."

As of 0850 GMT, 7Digital shares had rocketed 41.08% to 1.30p.