JTBC announced that it will strive to normalize management following the court’s decision to extend the ARS (Autonomous Restructuring Support).
On July 30th, JTBC stated in an official release, “Yesterday, the rehabilitation court decided to extend JTBC’s ARS procedure. We apologize to creditors who wish for a swift resolution.”
JTBC explained, “Since the investigation report by the court-appointed accounting firm has not yet been released, discussions on the plan have not reached a concrete stage. Once the report, scheduled for submission in August, is available, we will do our utmost to protect creditor rights based on its contents.”
It added, “Since the ARS procedure began, JTBC has communicated multiple times with the creditor council, either through court mediation or individually, to gather various opinions. We are also paying attention to voices from individual creditors conveyed through various channels. Currently, JTBC has reached a stage where previously unstable program production and broadcasting have been fully normalized. We will continue with normal broadcasting and management activities. To this end, we are boldly cutting unnecessary costs and focusing on content production.”
Earlier, the liquidity crisis of the JoongAng Group intensified after JTBC failed to repay securitized loans amounting to ₩20.6 billion KRW (about $14.3 million USD). Subsequently, JoongAng Holdings and other affiliates, along with JTBC, filed for rehabilitation procedures with the court.
Following this, JTBC’s application for the ARS program was accepted, postponing the court’s decision on the commencement of rehabilitation proceedings for a month.