JoongAng Group's Five Companies, Including JTBC, Assigned to Court Rehabilitation Proceedings Amid Liquidity Crisis... "We Will Do Our Best to Recover Damages"

[Financial News] The rehabilitation cases involving JoongAng Group affiliates, including the comprehensive programming channel JTBC, which is facing a liquidity crisis, have been assigned to court and will now enter formal rehabilitation proceedings.
On the 15th, the Seoul Bankruptcy Court assigned the applications to begin rehabilitation proceedings filed by JoongAng Holdings, the group's holding company, as well as JTBC, ContentreeJoongAng, Megabox Joongang, and Jungang P&I, to Seoul Bankruptcy Court Division 2, headed by Presiding Judge Jung Joon-young.
The court is expected to schedule a hearing with the company representatives soon. Under the Debtor Rehabilitation and Bankruptcy Act, the court must question the debtor or its representative when a rehabilitation petition is filed.
Earlier, JTBC declared default on the 12th after failing to repay 20.6 billion won in securitized borrowings at maturity. Two days later, on the 14th, JoongAng Holdings, ContentreeJoongAng, Jungang P&I, and Megabox Joongang filed for the start of rehabilitation proceedings. JTBC also submitted its own petition later that day.
JoongAng Holdings and ContentreeJoongAng also requested preservation measures and a comprehensive stay order.
A preservation measure prevents a company from disposing of assets and repaying specific creditors in a preferential manner. A comprehensive stay order, by contrast, freezes creditors' claims so they cannot secure the company's key assets through compulsory execution, provisional seizure, or auction before rehabilitation proceedings begin. After JTBC's default, domestic credit rating agencies all downgraded its credit rating.
Meanwhile, the JoongAng Group said it would do its utmost to help recover damages.
At a press conference that day, Vice Chairman Jeongdo Hong said, "We have done our best to ensure management stability, but due to several factors, including worsening external economic conditions and a cash crunch caused by credit rating downgrades, we had no choice but to make this unavoidable decision today." He added, "I would like to once again offer my sincere apologies to many creditors, shareholders, and other stakeholders. We will make the recovery of your damages our top priority and do our utmost until the end."
He continued, "Employees who hear about this incident are also likely to be deeply shocked and very anxious. We will explore every possible measure needed for a swift normalization and make every effort to ensure employment stability. We want today's rehabilitation filing to become a new beginning, one that preserves broadcasting as a national asset and gives peace of mind to partner companies and employees alike."
theknight@fnnews.com Jeong Kyung-soo Reporter