[Sportschosun Baek Ji-eun] JoongAng Group Vice Chairman Jeongdo Hong has stated his position on the company’s management issues.
Hong held an emergency press conference on the 15th at the JoongAng Ilbo headquarters in Sangam-dong, Mapo-gu, Seoul.
Hong bowed deeply and said, "JoongAng Holdings and some of its affiliates have filed for rehabilitation proceedings with the court. I sincerely apologize for causing concern and for the trouble brought about by today’s situation."
He added, "Although the company has done its best to stabilize management, worsening external economic conditions and a cash crunch caused by credit rating downgrades have left us with no choice but to make this unavoidable decision. I would like to once again offer my sincere apologies to all stakeholders, including the many creditors and shareholders of JTBC, Megabox, and ContentreeJoongAng. We will make restoring your losses our top priority and do our utmost to the very end."
He also said, "Employees who have heard about this situation are likely deeply shocked and very anxious. We will explore every possible measure needed for a swift normalization and make every effort to ensure job stability. I want to turn the rehabilitation filing into a new beginning that preserves broadcasting, a national asset, and gives confidence to business partners and employees alike. I will do my utmost to fulfill my responsibilities to the end. The company’s core operations, including the 2026 FIFA World Cup broadcasts, will continue without interruption and operate normally," before bowing once again.
JTBC declared a default on the 12th after failing to repay 20.6 billion won in securitized borrowings at maturity. On the 14th, it also filed for rehabilitation proceedings for ContentreeJoongAng and Megabox Joongang, both affiliates of JoongAng Group. Along with the rehabilitation petitions, ContentreeJoongAng and JoongAng Holdings also submitted applications for preservation measures and a blanket injunction.
Preservation measures are procedures that prevent a company from disposing of assets and repaying certain creditors in a preferential manner. A blanket injunction is a measure that freezes claims so creditors cannot secure major company assets through compulsory execution, provisional seizure, or auction before corporate rehabilitation begins.
Baek Ji-eun, silk781220@sportschosun.com
