JoongAng Ilbo, facing a liquidity crisis, has officially applied for a workout, a corporate restructuring process.
According to Yonhap News, JoongAng Ilbo announced on June 19 that it has formally submitted a workout application to its main creditor, Hana Bank. The company stated, "We will continue discussions with creditors to develop effective debt restructuring and management normalization plans."
JoongAng Ilbo reiterated its stance that a fair debt restructuring should be conducted for all creditors now that the workout process has begun.
The company specifically addressed a demand from Hanyang Securities for early repayment of 22 billion won in corporate paper, stating, "Individual early repayment requests from specific creditors are inconsistent with fairness."
JoongAng Ilbo explained, "As the workout process intensifies, it is essential that fair and consistent debt restructuring occurs for all creditors, making it difficult to accept early repayment requests from specific creditors before maturity."
Previously, on June 18, JoongAng Ilbo disclosed that it had failed to repay due payments due to insufficient deposits, resulting in the first default on its commercial paper.
Additionally, on June 14-15, five affiliates of the group, including JTBC and the holding company JoongAng Holdings, filed for corporate rehabilitation with the court. Industry analysts believe that JoongAng Ilbo's workout application will mark the beginning of financial restructuring efforts for the JoongAng Group.
* This article has been translated by AI.
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