JoongAng Ilbo, which is experiencing a liquidity crisis, on the 19th officially applied for a workout (corporate restructuring) at the Seosomun branch, its main-transaction branch of Hana Bank. After a workout application, a creditors' council composed of creditor financial institutions is convened to review the possibility of normalization and the likelihood of debt recovery, then decides whether to accept it.
JoongAng Ilbo issued a statement the same day, saying, "We have officially applied for a workout to our main creditor bank, Hana Bank. We will continue consultations with the creditors and faithfully prepare practical debt adjustments and management normalization plans."
Regarding Hanyang Securities' request for early redemption of JoongAng Ilbo commercial paper (CP) totaling 22 billion won, JoongAng Ilbo reiterated that "(individual early redemption) is contrary to fairness." It added, "As the workout process gets underway, fair and consistent debt adjustments must be made for all creditors. It is difficult to accept only a specific creditor's demand for early redemption before maturity."
Regarding the CP redemption request the day before, JoongAng Ilbo disclosed, "We confirmed that due to our lack of deposits, we were unable to pay the settlement funds, and the first bills were processed as dishonored as of the 18th." JoongAng Group, amid a liquidity crisis, filed for commencement of court receivership for five group companies, including JTBC and the holding company JoongAng Holdings, on the 14th to 15th.