(LEAD) Court allows cash-strapped JTBC to begin rehabilitation process
SEOUL, Aug. 28 (Yonhap) -- The Seoul Bankruptcy Court on Friday approved trouble...
Seoul's Bankruptcy Court has granted permission for cash-strapped local broadcaster JTBC to initiate rehabilitation proceedings, enabling it to restructure its debts under court oversight. The broadcaster, a subsidiary of the media conglomerate JoongAng Group, petitioned for rehabilitation on June 15 following a failure to settle a 20.6 billion won ($14.9 million) loan at maturity.
The TV network has faced a significant decline in the advertising sector, primarily due to the rapid transformation of media consumption towards digital platforms and over-the-top streaming services such as Netflix. The court's decision took into account additional elements, including substantial fees for Olympic broadcasting rights amassed by JTBC and the overall liquidity crisis within the JoongAng Group.
JTBC must present its rehabilitation plan by January 29, 2024. Rehabilitation proceedings have already commenced for four other JoongAng Group entities: JoongAng Holdings, ContentreeJoongAng, JoongAng P&I, and Megabox JoongAng. JTBC has assured the court of its commitment to comply with the rehabilitation proceedings. The company expressed its determination to adhere faithfully to the process, emphasizing its intention to normalize business operations through a rapid sale.
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