Court grants JTBC time for autonomous restructuring amid liquidity crisis

JoongAng Group Vice Chairman Hong Jeong-do leaves the Seoul Bankruptcy Court in Seoul, June 23. Joint Press Corps

A court on Tuesday allowed JTBC to negotiate restructuring plans directly with its creditors amid the local broadcaster's liquidity crisis.

The Seoul Bankruptcy Court approved JTBC's autonomous restructuring support (ARS), temporarily halting the media company's court-led rehabilitation proceedings until July 30.

JTBC, an affiliate of JoongAng Group, requested the ARS program when it filed for rehabilitation on June 15, three days after failing to repay 20.6 billion won ($13.3 million) in asset-backed loans at maturity.

The court can freeze receivership for up to three months and extend the deadline if significant progress is made.

Meanwhile, the court ordered four other JoongAng Group affiliates, which filed for receivership on June 14, to commence rehabilitation proceedings.

Megabox JoongAng and ContentreeJoongAng must submit their rehabilitation proposals by Dec. 1 and Dec. 15, respectively, followed by JoongAng Holdings and JoongAng P&I by Dec. 22.

The court plans to look into the financial circumstances of the five companies that led to the current crisis.