This article was displayed on the ChosunBiz MoneyMove (MM) site at 5:56 p.m. on Jun. 15, 2026.
As the JoongAng Group holding company and key affiliates began corporate rehabilitation on the 15th, attention is focusing on why SLL JoongAng, a content producer, did not apply for rehabilitation. SLL was the affiliate at the center of JoongAng Group's liquidity crisis. As the time approached for financial investors (FI) who invested hundreds of billions of won in 2021 to retrieve their funds, the financial burden on the entire group grew.
Although SLL JoongAng did not file for rehabilitation, the industry notes that Praxis Capital Partner, the private equity fund (PEF) manager that invested in SLL JoongAng, could be recognized as a secured rehabilitation creditor and thus obtain a significantly higher repayment priority.
◇ Price tag that once eyed the "2 trillion won" range... both listing and sale came to nothing
According to legal sources on the 15th, the Seoul Bankruptcy Court assigned the cases to commence rehabilitation proceedings for five companies—JoongAng Holdings, JTBC, Contentree JoongAng, Megabox JoongAng, and JoongAng P&I—to the 2nd Rehabilitation Division. Two days after JTBC fell into default for failing to repay on time a 20.6 billion won securitized borrowing fund, the group's holding company, major operating companies, and real estate and equity-holding entities sought court protection.
Along with the application to commence rehabilitation, Contentree JoongAng also filed for a preservation order and a comprehensive injunction. If the court accepts these, individual creditors will find it difficult to enforce or collect claims, and debt adjustments will be carried out within the court-defined rehabilitation process.
Although major affiliates simultaneously applied for corporate rehabilitation that day, SLL JoongAng was excluded from the filing list. SLL JoongAng is a core content producer under Contentree JoongAng. It is a key affiliate within JoongAng Group that holds many box-office hits such as "The Roundup" and "Culinary Class Wars," but at the same time stood at the center of the group's financial burden.
SLL JoongAng raised pre-IPO investment in 2021. Praxis Capital Partner and China's Tencent injected 300 billion won and 100 billion won, respectively. At the time, Praxis acquired SLL convertible preferred shares (CPS) through a special purpose company (SPC), Praxis Chateau Holdings.
SLL JoongAng was once expected to exceed a 2 trillion won valuation, but the problem worsened as the IPO was delayed. During that time, production costs rose and the IPO market slumped, and JoongAng Group ultimately moved to sell management control of SLL JoongAng by appointing Goldman Sachs as lead manager. But the sale plan failed with no gain.
Subsequently, Contentree JoongAng's plan to secure a 300 billion won investment from a global PE also fell through, and talks to sell Phoenix JoongAng to Hanwha Group collapsed. With inter-affiliate lending and guarantees no longer sufficient to resolve the liquidity crunch, it is seen as having had no choice but to play the strong card of rehabilitation.
◇ Praxis holding SLL JoongAng shares as collateral... if it becomes a secured rehabilitation creditor, repayment priority moves up
The investment banking (IB) industry is watching how JoongAng Group's rehabilitation filings will affect investors in key affiliates.
In rehabilitation proceedings, each investor holds a different status. Firms such as JKL Partners that invested in Contentree JoongAng's convertible bonds (CB) are direct creditors of Contentree JoongAng. Of the 100 billion won in CB issued in 2021, Contentree JoongAng has yet to repay 80 billion won. The maturity has been extended multiple times, and recently the maturity interest rate rose to the mid-8% range, pushing principal and interest to about 121.5 billion won.
Praxis's status, however, is different. Praxis is a CPS investor in SLL JoongAng. Since SLL JoongAng itself has not filed for rehabilitation, the SLL shares held by Praxis do not convert into rehabilitation claims against Contentree JoongAng or JoongAng Holdings.
However, Praxis is known to have secured SLL JoongAng shares held by the JoongAng Group side as collateral, so it is hard to view it as merely an SLL JoongAng shareholder. If a security interest has been established on SLL JoongAng shares, which are assets of Contentree JoongAng or JoongAng Holdings that filed for rehabilitation, Praxis can claim the status of "secured rehabilitation creditor" in the relevant proceedings.
If Praxis is recognized as a secured rehabilitation creditor, its repayment priority will come ahead of general rehabilitation creditors. In rehabilitation, public-interest claims such as employees' wages and severance, and the expenses of conducting the proceedings, are protected first. Secured rehabilitation claims are junior to such public-interest claims, but can be repaid before general rehabilitation creditors such as unsecured CB investors.
However, it is uncertain whether Praxis can recover all principal and interest. A secured rehabilitation claim is recognized only within the value of the collateral. If the value of the SLL JoongAng shares pledged as collateral falls short of Praxis's secured claim amount, the portion exceeding the collateral value will likely be classified as a general rehabilitation claim.