The court has approved JTBC’s application for an autonomous restructuring support program and postponed its decision on whether to commence rehabilitation proceedings.

The Seoul Bankruptcy Court’s 2nd Division announced that it will hold off on deciding whether to initiate rehabilitation proceedings until July 30 to monitor the progress of JTBC’s autonomous restructuring negotiations.

The autonomous restructuring support program is a system in which the court postpones the commencement of compulsory rehabilitation proceedings to support a company and its creditors in negotiating a restructuring plan independently.

During the autonomous restructuring support phase, the rights of creditors and shareholders are not diluted or impaired. The court may postpone the commencement of rehabilitation proceedings for up to three months, and this period can be extended if significant progress is made in negotiations.

The company is permitted to continue normal business operations while negotiating with creditors during this period.

The court plans to begin an investigation into the circumstances that led to JTBC’s rehabilitation filing, as well as an assessment of its property value, going-concern value, and liquidation value.

If an agreement is reached within the postponement period, JTBC will withdraw its rehabilitation application and implement the planned autonomous restructuring measures.

However, if the negotiations fail, the court will then decide whether to commence rehabilitation proceedings.

On June 12, JTBC declared a default after failing to repay 20.6 billion won in securitized borrowings upon maturity.

Two days later, on June 14, JoongAng Holdings, Contentree JoongAng, JoongAng P&I, and Megabox JoongAng filed for rehabilitation proceedings in succession, marking the beginning of the JoongAng Group rehabilitation crisis.

JTBC also filed for rehabilitation the following day, and subsequently expressed its intention to participate in the autonomous restructuring support program.

Reported by Lee Ho-geon | Video by Choi Kang-san | Graphics by Yang Hye-min | Produced by SBS Digital News