JTBC Completes Payment of Delayed Appearance Fees for 'Knowing Bros' and 'Please Take Care of My Refrigerator'... "Sorry for the Delay Caused by Court Approval Procedures"

[Financial News] JTBC, which is facing a corporate rehabilitation process, has reportedly completed payment of unpaid appearance fees and outside production costs after receiving court approval.
JTBC said in a statement on the 8th, "We received court approval last week and completed payment for unpaid dispatch fees and service fees that had been delayed due to the court's approval procedures," adding, "We apologize to performers and partner companies for the unavoidable delay in the payment schedule while we were waiting for the court's decision."
Earlier, the Korea Broadcasting Actors Union and Film Workers Solidarity issued a series of statements expressing concern that the rehabilitation of JoongAng Group could harm the broadcasting and film industries.
In a statement released on the 6th, the Korean Broadcasting Actors' Labor Union claimed that "since JTBC filed for corporate rehabilitation, the damage to broadcast actors has reached a serious level" and that "many content productions have been halted, and appearance fee payments have also been delayed for a long time."
The union pointed to delays in paying appearance fees for JTBC's flagship variety shows, "Knowing Bros" and "Please Take Care of My Refrigerator," as well as disruptions in paying rerun fees, which are performers' rights under neighboring rights. It also criticized JTBC for being passive in resolving the issue and communicating with stakeholders.
It also noted that if rehabilitation proceedings begin, performers' appearance fees are likely to be classified as lower-priority claims, making repayment less likely. The union urged JTBC to "seek a way to prioritize payment of actors' appearance fees, similar to wages."
Film Workers Solidarity also said in a statement on the 8th that "unpaid settlement payments from Megabox Joongang accrued through the 14th of last month were classified as rehabilitation claims, which has halted the settlement amounts from ticket sales already paid by audiences that should have gone to production, import, and distribution companies," adding that "if settlement payments remain tied up for a long time, small and medium-sized production, import, and distribution companies, as well as independent and art-film distributors, could suffer direct damage to their ability to continue business."
Meanwhile, after JTBC failed to repay at maturity a securitized loan worth 20.6 billion won on the 12th of last month, JoongAng Group filed for the commencement of corporate rehabilitation proceedings, or court receivership, for JoongAng Holdings, ContentreeJoongAng, Jungang P&I, and Megabox Joongang two days later, on the 14th.
On the 15th of the same month, JTBC also filed for rehabilitation and expressed its intention to enter the Autonomous Restructuring Support (ARS) program. ARS is a system that allows companies and creditors to negotiate restructuring voluntarily before the court decides whether to begin rehabilitation proceedings.
Accordingly, the court approved JTBC's ARS request on the 30th of last month and postponed its decision on whether to begin corporate rehabilitation proceedings. It also decided to initiate rehabilitation proceedings for the four other affiliates of JoongAng Group.
bng@fnnews.com Kim Hee-sun Reporter