Court allows cash-strapped JTBC to begin rehabilitation process

The Seoul Bankruptcy Court has granted permission to troubled local broadcaster JTBC to commence rehabilitation proceedings, enabling it to restructure its debts under court guidance. The decision came on Friday, following JTBC's filing for rehabilitation on June 15, three days after it failed to repay a loan of 20.6 billion won (US$14.9 million) at maturity.

The broadcaster has faced significant challenges due to a sharp decline in TV advertising revenue, a result of the rapidly changing media landscape favoring digital platforms and over-the-top streaming services such as Netflix. The court also considered additional factors, including hefty fees for Olympic broadcasting rights secured by JTBC and the wider liquidity crisis affecting the JoongAng Group.

As part of the court's decision, JTBC is required to submit its rehabilitation plan by January 29 of the following year. The court has already initiated rehabilitation proceedings for four other entities within the JoongAng Group – JoongAng Holdings, ContentreeJoongAng, JoongAng P&I, and Megabox JoongAng.