The Seoul Rehabilitation Court decided on August 28 to initiate corporate rehabilitation proceedings for JTBC.
The court's second division, led by Chief Judge Jeong Jun-young, announced the conclusion of JTBC's Autonomous Restructuring Support (ARS) process and the decision to commence rehabilitation proceedings.
The court cited several factors for its decision, including the growth of online video services (OTT) following the COVID-19 pandemic, rising production costs such as talent fees and labor, and a shrinking broadcast advertising market. It also noted significant expenditures related to Olympic broadcasting rights and a liquidity crisis affecting the entire Central Group.
The court opted not to appoint a separate administrator, allowing the current management team to remain in place. However, it included a condition that management could be replaced if any wrongdoing is identified.
The deadline for submitting the list of creditors is set for October 8, with the period for creditor claims running until November 6.
The creditors' council will consist of the company's major creditors, and a Chief Restructuring Officer (CRO) appointed based on recommendations from the council will oversee the company's financial management.
The deadline for submitting the rehabilitation plan is January 29 of next year.
Earlier in July, JTBC applied to the court to initiate rehabilitation proceedings, expressing a desire for the ARS process, which the court accepted, postponing the decision on rehabilitation.
JTBC stated, "After several discussions, we concluded that initiating the rehabilitation process would be more effective for protecting creditor interests. Therefore, we did not apply for an extension of the ARS, leading to the decision to commence rehabilitation proceedings."
The financial crisis at Central Group began when JTBC declared a default in June after failing to repay 20.6 billion won in liquidity loans.
With the initiation of JTBC's rehabilitation process, five affiliates of Central Group, including JoongAng Holdings, Contentree JoongAng, JoongAng P&I, and Megabox JoongAng, will also undergo rehabilitation proceedings. JoongAng Ilbo has received a decision to commence a corporate restructuring workout.
* This article has been translated by AI.
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