JTBC, part of the JoongAng Group, has expressed its intention to apply for the Autonomous Restructuring Support (ARS) program as part of its corporate rehabilitation efforts.
According to legal sources on June 16, JTBC submitted a request to the Seoul Rehabilitation Court’s Second Division, led by Judge Jung Jun-young, to postpone the initiation of its rehabilitation proceedings.
This indicates JTBC's desire to participate in the ARS program, which allows the court to defer mandatory rehabilitation proceedings and supports negotiations between the company and its creditors for voluntary restructuring.
If approved, the court can postpone the initiation of rehabilitation proceedings for up to three months. If significant progress is made in negotiations, an extension may be granted.
Currently, JTBC is the only company among the five JoongAng Group affiliates to apply for the ARS program.
On June 15, the court issued a preservation order and a comprehensive prohibition order for Central Holdings, JTBC, Contentree Central, Megabox Central, and JoongAng P&I.
The preservation order prevents the company from disposing of assets before a decision on the initiation of rehabilitation proceedings, ensuring that no specific creditor is favored.
Conversely, the comprehensive prohibition order prevents creditors from securing the company’s major assets through enforcement actions, such as seizures or auctions, before the initiation of corporate rehabilitation.
JoongAng Ilbo has also decided to pursue a corporate financial restructuring (workout).
Earlier, on June 12, JTBC declared default after failing to repay 20.6 billion won in maturing liquidity loans.
Two days after the default announcement, on June 14, Central Holdings, Contentree Central, JoongAng P&I, and Megabox Central filed for rehabilitation proceedings. JTBC followed suit with its own rehabilitation application on June 15.
The rehabilitation court has assigned all applications to the Second Division for consolidated hearings.
The court is expected to schedule a hearing date for the representatives soon.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.