Cabtivate, the Edinburgh-based taxi advertising business which went bust a year ago owing creditors £1m, is to be relaunched by a Russian media group which has bought software rights from the administrator and plans a UK-wide service.

IMTV is "a Russian-based new media specialist with significant digital real estate including fixed and digital posters, transport media, in-mall and in-store TV, and has a global reach that includes the UK, eastern Europe, and the USA", according to the IMTV website.

Its Moscow-based chief executive, Tony Yammine, told The Herald yesterday: "We are looking to attract a minimum 10,000 taxis in three years' time, this is going to be the first interactive network in Europe."

The Herald revealed last January that Cabtivate, which had received a £100,000 grant from Scottish Enterprise, had saddled dozens of Glasgow and Edinburgh cabbies with expensive four-year finance agreements before going into liquidation owing creditors almost £1m, including £300,000 to Bank of Scotland.

Founder and former cabbie Mark Greenhalgh had persuaded drivers to pay £3100 for his equipment, repaying it at £104 a month over four years, on the promise of £200-a-month income.

The IMTV website admits: "Unfortunately in January 2007 the company experienced cashflow problems due to a banking error and was forced into liquidation."

It also claims: "The Cabtivate source code (the platform upon which the software operates) was a personal asset of Mark Greenhalgh ... he agreed to sell this code for £1 to help out the taxi drivers left with a financial burden."

Ken Pattullo of accountant Begbies Traynor, the administrator, commented: "What actually happened was that the intellectual property had been transferred to him (Greenhalgh) by the company prior to our appointment. We had it transferred back to us and then concluded the sale of the IP a few months ago, to a Russian person."

He added that the proceeds had merely covered the costs of the liquidation. "There is not going to be any money for creditors."

Greenhalgh is quoted on the website as saying: "I am delighted that IMTV has acquired the company and are investing in Cabtivate."

But Pattullo said: "The company has not been acquired, it is still in liquidation."

The IMTV website says the business has been renamed Cabtivate Networks but is "keeping the Cabtivate team on board".

Questioned on Greenhalgh, Yammine said: "He made a lot of damages, but the technology is very good. We are using (him and) another technician only for a certain time, just to give some advice."

He said IMTV was planning a major launch of the service in London early next month.

The website says the Cabtivate system, which enables content on the in-cab screens to be updated instantly by a satellite-linked central server, "will be fitted in black cab networks in Edinburgh, Glasgow, Manchester, Birmingham, Bristol and London and has also received approval from local authorities for installation in networks in Liverpool, Newcastle, Sheffield, Nottingham, Reading and Swindon".

A Glasgow City Council spokesman commented that although some cabs were still equipped with the screens, "Cabtivate do not have any current valid permission to run any advertising on these screens - we last heard from them in December 2006, if they have resurfaced in any form they will have to approach us afresh".

Yammine said: "We are in the process of refreshing all the licences."

In a message to the taxi trade, IMTV says: "As the new owners, we are committed to buying the systems back from the leasing companies so that drivers who have not removed their systems will no longer have monthly payments to make. Drivers who bought the system will be made the same offer as the leasing companies ... the main difference this time is there will be absolutely no financial risk to the drivers whatsoever."