Court Extends Suspension Period for Decision on JTBC Rehabilitation Proceedings by One Month

If an Agreement Is Reached Within the Period,
JTBC Will Withdraw Rehabilitation Application and Implement ARS Plan

The deadline for the decision to commence rehabilitation proceedings for JTBC has been extended by one month.

JTBC Headquarters, Mapo-gu, Seoul. Photo by Yonhap News Agency

The 2nd Division of Rehabilitation of Seoul Bankruptcy Court (Chief Judge Jeong Junyoung) announced on July 29 that the suspension period, which was originally set to end on July 30, has been extended to August 30 in order to facilitate discussions on restructuring between JTBC and its creditors.

On June 15, JTBC filed an application for the commencement of rehabilitation proceedings with the court, expressing its intention to use the Autonomous Restructuring Support (ARS) procedure, which the court approved.

ARS is a system in which the court temporarily withholds its decision on whether to start corporate rehabilitation, allowing the debtor company and creditors to autonomously negotiate debt restructuring. The core idea is to minimize the impairment of corporate value by enabling the company to lead normalization efforts, instead of undergoing court-driven rehabilitation proceedings. As this procedure emphasizes autonomous restructuring and takes place prior to the commencement of formal rehabilitation, the rights of creditors and shareholders are not diluted or impaired. The court may withhold its decision to commence the rehabilitation procedure for up to three months, and if negotiations progress, this period can be further extended.

If an agreement is reached during the deferment period, JTBC will withdraw its application for rehabilitation and proceed with the planned ARS measures. If negotiations break down, the court will decide whether or not to initiate rehabilitation proceedings.

Previously, on June 12, JTBC declared a default after failing to repay a total of KRW 20.6 billion in securitized borrowings at maturity.

This content was produced with the assistance of AI translation services.