Afromedia will miss the deadline for releasing its Audited Financial Statements for the fiscal year ended 31 December 2022 due to a lawsuit. A lawsuit was filed against the company, preventing Afromedia from accessing its accounts in order to prepare its financial report for the previous year.
According to Afromedia, the company’s accounts were frozen after a Garnishee Order was issued against it on December 8, 2022. This will have an impact on the company’s ability to release the first quarter Unaudited Financial Statements for the fiscal year ending March 31, 2023. Although the firm did not specify which company obtained a court order freezing its accounts, Prime Business Africa learned of a court case involving Afromedia and Standard Chartered Bank Limited.
Stanbic IBTC had extended a N3.15 billion loan to Afromedia under its former Managing Director, Akin Ire Olopade, in 2010. The court case is still ongoing.
In a recent statement obtained on Wednesday, 22 March 2023, Afromedia said it: “wishes to inform its valued shareholders, investing public, Nigerian Exchange Limited and key stakeholders that it will be unable to meet the deadline of 31st March 2023, on which it is required to file the Audited Financial Statements for the year ended 31st December 2022 (2022 AFS) and consequently will not be able to file the 1st quarter Unaudited Financial Statements for the period ending 31st March 2023 (2023 Q1 UFS ) in accordance with the Listing Rules of the Nigerian Exchange Limited.
“On the 8th of December 2022, a Garnishee Order Nisi was given against the Company which resulted in all its bank accounts being frozen and funds therein rendered inaccessible. The Company has appealed the Order and is hopeful that the Garnishee Order would be vacated with dispatch. However, due to this Order, the Company is unable to fulfil its financial obligations towards the preparation of its Audited Financial Statements as well as prepare for its Annual General Meeting within the period stipulated by regulation.
“The Company shall file the 2022 Audited Financial Statements and the Unaudited Financial Statements for the first quarter of 2023 on or before the 29th of June 2023 and 29th of July 2023 respectively.”