SPO Networks Inc (SPOI)

[Sparks100]

HLNT/NIR/Walters/PWC Lawsuits Update:

The Judge in the New York case handed down two decisions today. You can view them at:

http://iapps.courts.state.ny.us/iscroll/SQLData.jsp?IndexNo=600893-2010

They are documents 149 and 150.

As I have not had an opportunity to fully read and absorb them yet, I can only give a brief synopsis here.

Background:
There were three Motions pending priot to today, #1 (NIR's Motion to Dismiss HLNT's Counter Claims and 3rd Party Action), #9 (HLNT's motion to have the severance vacated and have the Counter Claims and 3rd Party Action rejoined with the NIR case), and #10 (Walter's Motion to have HLNT compelled to Arbitration and a stay of the New York Case during the Arbitration).

The Decisions:
Motion #1: The judge upheld, in part, NIR's Motion, but also denied in part NIR's Motion.
Motion #9: The Judge upheld HLNT's Motion to have the cases rejoined.
Motion #10: The Judge has not submitted the document yet, but she has referred to this Motion in #9, and it is expected that #10 will be denied and that HLNT will not have to endure the Arbitration order and the proceedings will not be stayed.

Interpretation:
HLNT did not win completely on the NIR dismissal motion, but won enough to have parts of the Counter Claims go forward. HLNT clearly has won on the other two Motions. HLNT is sitting in a very good position heading into next weeks Status Conference.

I will post more on this later this evening when the reading is done.