A South Korean court has approved the application for the self-restructuring support program for JTBC and has postponed the decision on whether to initiate bankruptcy proceedings until July 30.
The Seoul Bankruptcy Court's second division, led by Judge Jeong Jun-young, announced on June 30 that it decided to delay the determination of bankruptcy proceedings to monitor the status of JTBC's restructuring negotiations.
The self-restructuring support program allows the court to defer the initiation of bankruptcy proceedings while enabling the company and its creditors to negotiate restructuring autonomously. During this period, the company can continue normal operations, and if negotiations progress, the deferral can be extended for up to three months.
During the deferral period, JTBC will negotiate debt restructuring with its creditors. If an agreement is reached, the company may withdraw its bankruptcy filing and proceed with self-restructuring. If negotiations fail, the court will then decide on the initiation of bankruptcy proceedings.
The court will also conduct an investigation into JTBC's asset value, going concern value, and liquidation value to assess the necessity of bankruptcy.
In contrast, Central Holdings, Contentree Central, Central P&I, and Megabox Central, which also filed for bankruptcy, received a decision to initiate bankruptcy proceedings on the same day. The court has not appointed a separate administrator and considers the current representatives as the administrators. Each company is expected to submit a restructuring plan by December after undergoing creditor investigations.
JTBC declared a default on June 12 after failing to repay 20.6 billion won in liquidity loans. Following this, several affiliates of Central Group filed for bankruptcy, and JTBC requested the application of the self-restructuring support program along with its bankruptcy filing.
* This article has been translated by AI.
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