JTBC Files for Court Receivership Following Default

JTBC, a key affiliate of JoongAng Group, filed for the commencement of rehabilitation proceedings with the court this afternoon (June 15).

It has been confirmed that other affiliates, including Contentree JoongAng, Megabox JoongAng, and JoongAng P&I, as well as the group's holding company, JoongAng Holdings, filed for the same procedure one day earlier.

These companies also filed for preservation orders and comprehensive injunctions, which appears to be a measure to prevent specific creditors from receiving preferential repayment and to secure time to prepare a rehabilitation plan.

Hong Jeong-do, Vice Chairman of JoongAng Group, held a press conference this afternoon (June 15) and expressed his apologies regarding the realization of the group's overall liquidity crisis.

[Interview] Hong Jeong-do / Vice Chairman of JoongAng Group: "I am sincerely sorry for causing trouble by leading to today's situation. We will take all necessary measures for a swift normalization and will make utmost efforts, including ensuring job stability."

JTBC failed to repay 20.6 billion won in bonds on time on June 12, and immediately following the default, JTBC's credit rating was downgraded to 'CCC,' which indicates non-investment grade status.

The investment in securing sports broadcasting rights from 2026 to 2032 through a solo bid of approximately 700 billion won, separate from the 'Korea Pool' of the three major terrestrial broadcasters, is also being cited as a background factor for the liquidity crisis.

However, JTBC explained that broadcasting operations, including the coverage of the North and Central America World Cup, will continue to operate normally without interruption.

It is reported that JoongAng Group is pursuing the sale of its office buildings, including the JoongAng Ilbo building and the JTBC building in Mapo-gu, Seoul, valued at 550 billion won.

The decision on whether to commence rehabilitation proceedings is typically made within one month, during which the court will evaluate whether there is value in continuing business operations.

If the court determines that there is no possibility of rehabilitation, it may declare bankruptcy.

Reported by Kim Deok-hyeon | Video by Kang Dong-cheol | Video Editing by Kim Jong-mi | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.