Court Delays Decision on Whether to Open JTBC's Rehabilitation Proceedings for Another Month

[Financial News] The court has once again extended the deadline for delaying its decision on whether to open rehabilitation proceedings for JTBC.
The Rehabilitation Division 2 of the Seoul Bankruptcy Court, headed by Judge Jung Joon-young, said on the 29th that it had extended the suspension period from the original deadline of the 30th of this month to the 30th of next month. The move is intended to support talks on restructuring between JTBC and its creditors.
JTBC filed for the opening of rehabilitation proceedings with the court on the 15th of last month and said it wanted to proceed under Autonomous Restructuring Support (ARS). The court accepted the request.
If the court approves an ARS request, it may delay its decision on whether to open rehabilitation proceedings for up to three months. If negotiations make substantial progress, the deadline can be extended further.
If an agreement is reached during the suspension period, JTBC will withdraw its rehabilitation filing and carry out the planned ARS process. If the talks collapse, the court will decide whether to open rehabilitation proceedings.
In the case of four other JoongAng Group affiliates that filed for rehabilitation, including JoongAng Holdings, ContentreeJoongAng, Jungang P&I and Megabox Joongang, rehabilitation proceedings have already been opened. The companies have been notified of deadlines for submitting creditor lists and rehabilitation plans.
The deadlines for submitting rehabilitation plans are Dec. 1 for Megabox Joongang, Dec. 15 for ContentreeJoongAng, and Dec. 22 for JoongAng Holdings and Jungang P&I.
The JoongAng Group's financial crisis began when JTBC declared default on the 12th of last month 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 rehabilitation proceedings one after another, followed by JTBC, the source of the crisis, on the 15th.
[email protected] Jung Kyung-soo Reporter