Court to Decide Future Proceedings Following Central Group Hearings

As the court conducts hearings for representatives of Central Group's affiliates seeking rehabilitation, Hong Jeong-do, vice chairman of Central Group, expressed his intention to abide by the court's decision.

The Seoul Rehabilitation Court's Rehabilitation Division 2, led by Judge Jeong Jun-young, began hearings at 10 a.m. on June 23, starting with Central Holdings and continuing with four other affiliates.

After the morning session, Hong told reporters, "I answered sincerely and well." When asked about the possibility of liquidation instead of rehabilitation, he replied, "I will sincerely follow the court's judgment."

Hong and Kim Jin-kyu, representing Central Holdings and Central P&I, attended the court session.

Judge Jeong Jun-young informed reporters around noon that the hearings were ongoing, stating, "The presiding judge is conducting them," and added, "The future course of action will be determined based on the hearing results."

When asked when a decision on the initiation of rehabilitation proceedings might be made, he said, "We will discuss and decide after the hearings conclude."

The hearings will proceed in the following order: Central P&I, JTBC, Megabox Central, and Contentree Central. The court plans to assess the representatives regarding their asset and liability status and the reasons for seeking rehabilitation before making a decision on whether to initiate proceedings.

Particular attention is being paid to the application of the Autonomous Restructuring Support (ARS) program requested by JTBC. The ARS allows the court to postpone the initiation of rehabilitation proceedings for a certain period, enabling companies and creditors to negotiate restructuring autonomously.

The liquidity crisis for Central Group's affiliates escalated after JTBC declared a default on June 12, failing to repay 20.6 billion won in liquidity loans. Subsequently, Central Holdings, Contentree Central, Central P&I, and Megabox Central filed for rehabilitation, with JTBC following suit by applying for rehabilitation proceedings in court.