JTBC Files for Rehabilitation After Public Apology: "Unable to Find Way to Repay Debt," Corporate Cards Suspended

JTBC has filed for court rehabilitation proceedings just two days after declaring a default on its debt.

This comes half a day after Contentree JoongAng, an affiliate of JoongAng Group, and its subsidiary Megabox JoongAng filed for the same rehabilitation process earlier today (June 15).

Hong Jeong-do, Vice Chairman of JoongAng Group, held a press conference this afternoon to issue a public apology, stating, "I am sincerely sorry for causing trouble," and adding, "We will make recovery of damages our top priority and do our utmost."

[Hong Jeong-do/Vice Chairman of JoongAng Group: I once again offer my apologies to the numerous creditors, shareholders, and all other stakeholders of JTBC, Megabox, and Contentree JoongAng.]

Vice Chairman Hong also addressed the employees directly regarding the group's major entities filing for rehabilitation.

In a statement sent to employees, he said, "The management has explored every possible measure to overcome the liquidity crisis and maintain the group's management stability. Despite these efforts, the prolonged tightening of the capital market against the backdrop of accumulated financial burdens has made it unavoidable for us to file for rehabilitation."

Earlier this morning, Samsung Card and Hyundai Card suspended the use of JTBC corporate cards, leaving employees unable to use company cards.

The JTBC finance team notified staff, saying, "We apologize for the inconvenience caused to employees holding Samsung and Hyundai corporate cards," and added, "The use of all other corporate cards, including Hana Card and Shinhan Card, is also scheduled to be suspended."

JTBC declared a default on June 12 after failing to repay 20.6 billion won in maturing securitized borrowings.

Domestic credit rating agencies downgraded JTBC's credit ratings immediately following the default.

NICE Investors Service lowered the credit rating of JTBC's unsecured bonds from 'BBB/Negative' to 'CCC,' citing a significant increase in liquidity risk.

Korea Ratings also downgraded the credit rating of JTBC's unsecured bonds from 'BBB (Negative)' to 'BB (Negative Watch),' assessing that "the possibility of financial risk spreading across affiliates has increased, and uncertainties regarding liquidity have expanded."

Inside and outside the business community, analysts suggest that excessive content investment and exclusive broadcasting rights contracts for major sports events by JoongAng Group affiliates, including JTBC, have led to the deterioration of their financial structure.

Reported by Kim Jiuk | Video by Ryu Jisu | Graphics by Yang Hyemin | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.