Court Freezes Assets and Claims of Five JoongAng Group Companies Including JTBC and JoongAng Holdings

Preservation Order and Comprehensive Prohibition Order

The assets and claims of five companies in the JoongAng Group, including JTBC, which filed for corporate rehabilitation, and its holding company, JoongAng Holdings, have been frozen.

JTBC Studio Ilsan, Goyang-si, Gyeonggi Province. Yonhap News Agency

According to the legal community on June 16, the Second Division of Rehabilitation at the Seoul Bankruptcy Court (Chief Judge Jeong Junyoung) issued a preservation order and a comprehensive prohibition order the previous day against JTBC, JoongAng Holdings, ContentreeJoongAng, Megabox JoongAng, and JoongAng P&I.

A preservation order is a measure that prevents the company from selling its assets before a decision to commence rehabilitation procedures is made. A comprehensive prohibition order is a measure that freezes creditors' claims so that they cannot secure company assets through compulsory execution, provisional seizure, or auction before the commencement of corporate rehabilitation.

Previously, on June 12, JTBC declared a default after failing to repay a securitized loan worth 20.6 billion won at maturity. On June 14, JoongAng Holdings, ContentreeJoongAng, JoongAng P&I, and Megabox JoongAng filed for the commencement of rehabilitation procedures. JTBC also filed for rehabilitation on June 15.

The rehabilitation court assigned each company's case to the Second Division so that a single panel could review them collectively. The panel is expected to designate a date for the examination of the representatives in the near future. Under the Debtor Rehabilitation and Bankruptcy Act, when an application for commencement of rehabilitation procedures is filed, the court must examine the debtor or its representative.

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