Classic 1027 – previously known as Classic FM – has started business rescue proceedings, African Media Enterprises (AME) announced on Tuesday.
South Africa’s only commercial classical music radio station, Classic 1027 broadcasts across Gauteng, via DStv and online.
AME, who bought a 46% stake in Classic for R7m last year and is a “substantial creditor” to the radio station, said it had been informed by Classic’s board of its decision to voluntary start business rescue proceedings.
“The board of that company believes that Classic will remain on air,” AME said.
AME will fully impair its exposure to Classic to zero in its interim results, which are due to be released in the last week of November.
The group also owns Algoa FM and OFM, Moneyweb, and the Central Media Group. Classic FM was rebranded as Classic 1027 earlier this year.
For the past financial year, AME saw a 10% decline its net profit, which it blamed, in part, on the Classic deal.
Fin24 contacted Classic 1027, but a representative said CEO Lyndon Johnstone is not available for comment.