Vice Chairman Hong Jeong-do of JoongAng Group held a press conference at 3 p.m. on the 15th at the JoongAng Ilbo building and issued a statement regarding the group affiliates' filings to commence rehabilitation proceedings. Wearing a black-toned suit and tie and standing at the podium with a stern expression, Hong bowed beside the lectern before delivering the statement.
Hong said, "JoongAng Holdings and some affiliates have applied to the court for rehabilitation proceedings," adding, "I am truly sorry for causing trouble by bringing about this situation today."
Explaining the background to the rehabilitation filings, Hong said, "The company has done its utmost to stabilize management, but for various reasons, including a credit squeeze caused by the deterioration of external economic conditions and a downgrade in credit ratings, we were left with no choice but to make this unavoidable decision today."
He added, "To all stakeholders, including the many creditors and shareholders of JTBC, Megabox, and Contentree JoongAng, I once again offer my sincere apology," and said, "We will make the recovery of your losses our top priority and do our utmost to the end."
According to legal sources, JTBC filed an application to commence rehabilitation proceedings with the Seoul Bankruptcy Court on this day. Four entities, including JoongAng Group's holding company JoongAng Holdings, Contentree JoongAng, Megabox JoongAng, and JoongAng P&I, also applied for rehabilitation with the Seoul Bankruptcy Court the previous day.
Hong also delivered a message to employees. He said, "I believe the company's employees, upon hearing of this incident, must be in great shock and very anxious," and emphasized, "We will explore every measure necessary for a swift normalization and make strenuous efforts to ensure job stability."
Regarding the applications to commence rehabilitation, Hong said, "I want to make this a new start to preserve broadcasting as a national asset and to restore a sense of stability for all transaction corporations and employees," adding, "To that end, we will make our best efforts to fulfill our responsibilities to the very end."
Hong said the group's core businesses are expected to continue without disruption. He said, "Each company's essential operations, including broadcasts of the North and Central American World Cup, will continue to operate normally without interruption."
He continued, "We ask for the understanding and cooperation of the public and stakeholders who have cherished and supported JoongAng Group," adding, "Once again, I offer my deepest apology."
Earlier, on the 12th, JTBC was downgraded to a "CCC" credit rating after failing to repay 20.6 billion won in securitized borrowing fund raised through Mir J-2 and Jeil TBC J-2. As the disclosures were made about applications for rehabilitation by core affiliates, including JoongAng Holdings, and JTBC went on to file for commencement of rehabilitation proceedings on this day, Hong delivered his statement.