African Media Entertainment announcement to shareholders:
Shareholders are advised that the company has been informed by the board of directors of Classic that, at a board meeting of Classic held on Friday, 27 September 2019, a resolution was adopted approving the voluntary commencement of business rescue proceedings in terms of the Companies Act, 2008. The board of that company believes that Classic will remain on air.
AME acquired a shareholding in Classic in January 2018 and is a substantial creditor to Classic on loan account.
Shareholders are further advised that the goodwill and trade mark intangible assets that related to the acquisition were fully impaired in the annual financial statements for the year ended 31 March 2019, and in the interim results for the six months ended 30 September 2019, additional write-offs will be implemented to reduce the company’s exposure to Classic to nil.
The interim results are expected to be released in or about the last week of November 2019.
