Estar considers legal action over FlyingPig

EStar Online, the company that supplied software to run FlyingPig's website, is considering taking legal action against FlyingPig's owner, IT Media, and also against IT Media's director, Tim Connell.

EStar Online, the company that supplied software to run FlyingPig's website, is considering taking legal action against FlyingPig's owner, IT Media, and also against IT Media's director, Tim Connell.

FlyingPig was placed in receivership in November last year after Estar Online disabled the online bookseller’s website. Estar Online managed the website at the time. EStar Online managing director Matthew Darby says he believes FlyingPig’s receiver will pay out "20 cents in the dollar".

"We also have a claim against [IT Media owner] Wilson Neill on the basis that it took six months to get our share certificates and in that time the share price dropped from 3.5 cents to 0.5 cents." The shares were in part payment for development work on the FlyingPig site.

EStar Online claims IT Media still owes it $500,000 in unpaid fees for the site development. Darby was in negotiation to buy FlyingPig as a going concern but he now says the branding is so tainted he wouldn't be interested in trying to resurrect the site.

"The business model itself is a good one, but the name has been so tarnished that it wouldn't be worth anything as a brand any more." Darby says the same is true of music site CD Star which eStar Online originally built and ran and eventually sold to IT Media.

"But this year is a new year and we don't have to have anything to do with IT Media or the problems of last year, which is good news."

IT Media has been in the news of late for the closure of its newspaper the New Zealand Business Times with the loss of eight jobs. Wilson Neill reported a $24 million loss earlier this month. Nearly $17 million of that is attributed to IT Media.

IDGNet attempts to contact Connell were unsuccessful.

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