LONDON (Alliance News) - 7digital Group PLC on Tuesday said it has paid the full amount due to HM Revenue & Customs and the wind-up petition served on unit 7digital Trading Ltd by the tax department has now been dismissed.
Shares in 7Digital were up 25% at 1.16 pence on Tuesday. Before the petition announcement, the company's shares were trading at 1.90p.
On January 4, the digital music company said that HMRC has published a notice in the London Gazette of a hearing for a wind-up petition served on 7digital Trading.
The petition concerned GBP417,000 due to HRMC, and the hearing was to take place on Wednesday this week.
This sum has now been paid. "Confirmation that the petition has been duly dismissed will follow," 7Digital said.
In the final quarter of 2018, 7Digital completed its restructure, closing several offices and cutting staffing numbers at all locations.
The company is also in talks with Juke GmbH, a subsidiary of European retailer MediaMarktSaturn, about the future of the Juke music service. 7digital has agreements with Juke, which are expected to generate GBP4 million of revenue in 2019.
MediaMarktSaturn is considering a change the current arrangement. This could result in 7digital taking more responsibility for the service or the service being closed, which would result in a termination payment to 7Digital.