Malysian Newsprint Industries to Liquidate
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Malaysian Newsprint Industries (MNI), Kuala Lampur, Malaysia, an associated company of Media Prima Bhd, will begin its voluntary winding up proceedings. In a recent statement to Bursa Malaysia, Media Prima said it is no longer feasible for MNI to continue operating.
MNI has appointed Lim San Peen of PricewaterhouseCoopers Advisory Services as the interim liquidator to commence creditors’ voluntary winding up proceedings, it added.
The board of MNI was of the opinion that MNI could not continue its business. MNI had been operating under very difficult market conditions, especially declining newsprint demand, and has incurred losses for the past three years.
MNI is an indirect associate of Media Prima by virtue of The New Straits Times Press’ (Malaysia) 21.36% stake in the former.
Arising from the creditors' voluntary winding up, Media Prima will make a full impairment of RM142.4 million; which is the group’s carrying amount of investment in MNI as at June 30, 2017. This in turn will have an adverse impact on its financial quarter ended June 30 2017.
Apart from the one-off impairment, the liquidation of MNI will not have any other adverse impact on the group.
However, in the event of any residual value from the liquidation process, Media Prima will recognize any recoveries in future periods.
