[Sportschosun reporter Baek Ji-eun] JTBC denied allegations that it sold nonperforming loans.
On the 13th, JTBC said it had properly disclosed its financial condition in accordance with accounting standards and complied with the Financial Investment Services and Capital Markets Act in connection with the issuance of hybrid bonds and the execution of hybrid loans.
It added, "The 33 billion won loan to StudioAyeJoongAng was only 13 billion won borrowed for essential production costs, as the company is a wholly owned subsidiary that produces JTBC entertainment programs." It explained, "The remaining 20 billion won was a conversion of securitized bonds issued by StudioAyeJoongAng into loans through a debt guarantee from JTBC, so no actual funds flowed out."
Earlier that day, the joint legal team for JoongAng Group bond investors held a press conference and claimed, "According to our own tally, there are about 450 individual accounts that invested in JoongAng Group corporate bonds, with total investment reaching about 76 billion won. Excluding 154.4 billion won in hybrid bonds issued for affiliate acquisitions and classified as equity, JTBC's actual total equity was minus 135.4 billion won. However, just before closing, it issued 40 billion won in hybrid bonds to avoid complete capital impairment."
The team also said lead arranger Shinhan Investment Corp. was aware of the risks but still arranged the bond issuance, saying principal and interest repayment would be manageable. It added that Kiwoom Securities failed to properly carry out investor protection procedures, including having a call center agent directly guide customers to register a refusal for a happy call.
Last month, JTBC declared default after failing to repay 20.6 billion won in securitized borrowings at maturity. JTBC and affiliates JoongAng Holdings, ContentreeJoongAng, Jungang P&I, and Megabox Jungang applied to begin corporate rehabilitation proceedings. In response, bond investors in the JoongAng Group have taken legal action.
Baek Ji-eun, silk781220@sportschosun.com
This article has been translated by GripLabs Mingo AI.
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