JTBC, which had been carrying out an autonomous restructuring support (ARS) program due to a default, is being mentioned as likely to enter a corporate rehabilitation process starting next month.
On the 21st, according to investment banking (IB) industry sources and according to legal sources, JTBC is said to have decided to proceed with a rehabilitation corporate rehabilitation process instead of extending the ARS, which ends on the 30th.
ARS is a system in which the court postpones for a certain period a decision on whether to commence rehabilitation proceedings and supports the company and creditors in autonomously discussing debt adjustment and business normalization plans. The initial hold period is one month, and it can be additionally extended up to three months depending on the progress of consultations. If autonomous consultations break down during this period, the court decides whether to commence rehabilitation proceedings.
In June, JTBC applied for corporate rehabilitation with the Seoul Bankruptcy Court and simultaneously submitted a "hold on the decision to commence rehabilitation proceedings." Accordingly, the court postponed the decision on whether to commence rehabilitation proceedings until July 30, and after JTBC again submitted an application to extend the hold period, the decision on whether to commence rehabilitation has been deferred until the 30th of this month.
If JTBC does not extend the ARS, it is expected to enter corporate rehabilitation proceedings starting Sept. 1. In fact, the extension application, which is typically submitted a week before ARS ends, is reportedly yet to be filed.