JoongAng Ilbo Faces First Default on 22 Billion Won Commercial Paper Due to Insufficient Funds

JoongAng Ilbo has announced that it has been processed for a first default after failing to meet a request for the early repayment of 22 billion won in commercial paper (CP).

According to the Financial Supervisory Service's Data Analysis, Retrieval and Transfer System (DART) today (June 19), JoongAng Ilbo stated the previous day, "A creditor presented a bill for payment on the 18th, but due to a lack of deposits, we were unable to settle the payment, resulting in a first default on the bill as of the 18th."

The defaulted commercial paper is held by Hanyang Securities. The original maturity dates for the 12 billion won and 10 billion won portions were December 7 of this year and March 30 of next year, respectively.

However, amid the recent liquidity crisis at JoongAng Group, an Event of Default (EOD) occurred, prompting the creditor, Hanyang Securities, to seek early recovery of the funds.

An Event of Default is a contractual clause that allows a creditor to demand repayment before the maturity date if certain conditions, such as a credit rating downgrade, are met.

In a statement released the previous day regarding Hanyang Securities' request for early repayment, JoongAng Ilbo said, "JoongAng Ilbo, which is currently pursuing a workout (corporate debt restructuring) with its main creditor bank, must maintain equity among all creditors." The company added, "Therefore, it is difficult to provide individual early repayment to a specific creditor before the maturity date."
 
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.