South Korean court backs JTBC restructuring talks
· UPIJune 30 (Asia Today) -- A South Korean court approved JTBC's request to negotiate a voluntary restructuring agreement with creditors while postponing a decision on whether to begin formal rehabilitation proceedings.
The Seoul Bankruptcy Court also opened rehabilitation proceedings Tuesday for four other JoongAng Group companies: MegaboxJoongAng, Contentree JoongAng, JoongAng Holdings and JoongAng P&I. The companies are part of a South Korean media group whose businesses include broadcasting, newspapers, content production and movie theaters.
The court's Rehabilitation Division 2, led by Presiding Judge Jung Joon-young, said it would defer its decision on JTBC's rehabilitation case until July 30 after hearing the broadcaster's proposed restructuring measures and future plans.
JTBC will proceed under the Autonomous Restructuring Support program, which allows a company and its creditors to negotiate debt adjustments before the court opens compulsory rehabilitation proceedings.
The process allows a company to continue normal operations while creditor and shareholder rights remain unchanged. A court may postpone its rehabilitation decision for up to three months and extend the period if negotiations make substantial progress.
JTBC may withdraw its rehabilitation application and implement the agreed restructuring plan if it reaches a deal with creditors. If the negotiations fail, the court will decide whether to open formal proceedings.
The court plans to investigate the circumstances that led JTBC to seek rehabilitation, the value of its assets and whether the company's value as an operating business exceeds its liquidation value.
It will also receive regular reports on the negotiations and may hold additional meetings if necessary.
The four affiliates placed under rehabilitation must complete creditor claims and reviews before submitting their rehabilitation plans in December.
MegaboxJoongAng must file its plan by Dec. 1, followed by Contentree JoongAng on Dec. 15. JoongAng Holdings and JoongAng P&I must submit their plans by Dec. 22.
The court did not appoint outside administrators, meaning the current chief executives will oversee the proceedings at their respective companies. The administrators may be replaced if the investigation finds that management contributed to the companies' financial difficulties.
Councils composed of major creditors will select law or accounting firms to advise them throughout the proceedings and negotiate financial restructuring measures with the companies.
Chief restructuring officers recommended by the creditor councils will also be appointed to monitor the companies' cash flow and financial management.
The cases followed JTBC's June 12 default on 20.6 billion won, or about $13.3 million, in securitized debt that it failed to repay at maturity. The four other JoongAng Group companies applied for rehabilitation proceedings on June 14.
-- Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260630010010539