▲ JTBC Studio Ilsan
The court has extended the deadline for deciding whether to initiate rehabilitation procedures for JTBC by one month, until August 30.
The Rehabilitation Division 2 of the Seoul Bankruptcy Court (Presiding Judge Jeong Jun-young) announced today (the 29th) that it has extended the suspension period—originally set to end on the 30th of this month—to the 30th of next month to support restructuring negotiations between JTBC and its creditors.
When JTBC applied for the initiation of rehabilitation procedures to the court on June 15, it requested the Autonomous Restructuring Support (ARS) program, which the court accepted.
When the court approves an ARS application, it can suspend its decision on whether to commence rehabilitation procedures for up to three months.
If there is significant progress in negotiations, the deadline can be further extended.
If an agreement is reached within the suspension period for the decision to initiate rehabilitation procedures, JTBC will withdraw its rehabilitation application and implement the planned ARS measures.
If negotiations break down, the court will decide whether to commence the rehabilitation procedures.
In the case of four other Joongang Group affiliates that applied for rehabilitation alongside JTBC—Joongang Holdings, Contentree Joongang, Joongang P&I, and Megabox Joongang—rehabilitation procedures have already been initiated.
These companies have been notified of the deadlines for submitting creditor lists and rehabilitation plans.
The deadlines for submitting rehabilitation plans for each company are December 1 for Megabox Joongang, December 15 for Contentree Joongang, and December 22 for Joongang Holdings and Joongang P&I.
The Joongang Group financial crisis erupted on June 12 when JTBC declared a default after failing to repay a maturing asset-backed borrowing totaling 20.6 billion won.
Two days later on the 14th, Joongang Holdings, Contentree Joongang, Joongang P&I, and Megabox Joongang applied for rehabilitation, followed by JTBC, the epicenter of the crisis, on the 15th.
(File Photo: Yonhap News)
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