[Dispatch=Reporter Jung Tae-yoon] The court has decided to commence corporate restructuring proceedings for JTBC.
The Seoul Rehabilitation Court's Rehabilitation Division 2 (Presiding Judge Jung Jun-young) announced on the 28th that it has terminated JTBC's autonomous restructuring support (ARS) procedure and decided to commence restructuring proceedings.
JTBC previously applied for corporate restructuring to the court in June. As a first step, it underwent an autonomous restructuring support program for creditor consultations.
JTBC stated, "Following multiple consultations, we determined that commencing restructuring proceedings would be more effective in protecting creditors' interests," explaining the decision to commence restructuring proceedings.
The court cited reasons for the commencement decision as "growth of OTT platforms following COVID-19, rising production costs including appearance fees and personnel expenses, and contraction of the broadcast advertising market."
The court also considered the impact of large-scale expenditures from Olympic broadcasting rights payments and a liquidity crisis affecting the Joong Ang Group overall. The court decided to maintain the current management structure.
However, it imposed the prerequisite condition that the current management could be replaced if their responsibility becomes apparent. The deadline for submitting the creditor list is October 8, and the creditor notification period runs until November 6.
Currently airing entertainment programs including 'Han Moon-chul's Black Box Review', 'Divorce Contemplation Camp', 'Knowing Bros', 'Please Take Care of My Refrigerator', and 'Love War' are scheduled to air without changes.
Dramas will also proceed smoothly, including 'Fly Up Butterfly' starring Kim Hyang-gi on the 19th of next month, 'Final Table' starring Ahn Hyo-seop in October, and 'God's Marble' starring Ahn Bo-hyun and Seongmin in December.
JTBC stated, "We will faithfully engage in the legal restructuring proceedings," and added, "Both management and employees will make every effort to normalize operations through an early sale."
<Photo source=Poster>
