JoongAng Ilbo has entered a corporations improvement operation (workout) process for management normalization.
According to the financial sector on the 10th, the creditor group, including JoongAng Ilbo's main creditor bank Hana Bank, held its first council and approved in writing the commencement of JoongAng Ilbo's workout. The creditor group secured more than 75% approval of the claims, meeting the three-quarters threshold required to start the workout.
JoongAng Ilbo plans to prepare a management normalization plan after an accounting firm's due diligence and carry it out with the consent of the creditor group.
Earlier, on the 19th, JoongAng Ilbo applied to the creditor group for a workout due to a credit rating downgrade and liquidity deterioration stemming from JoongAng Group's management crisis. Then, on the 25th, it was reported to have submitted a self-rescue plan to the creditor group that included the sale of the controlling shareholder's management control equity. It was reported to include materials such as the reasons for pursuing the workout, expense reduction measures and sales expansion measures, the sale of subsidiaries and real estate, and the sale of management control equity.
Immediately after the decision to commence the workout, JoongAng Ilbo issued a statement, saying, "JoongAng Ilbo's workout has begun," and, "We are deeply grateful to the creditor group for uniting their intentions for the company's management normalization." It added, "JoongAng Ilbo will faithfully cooperate with the accounting firm's due diligence to come and the establishment of a management normalization plan."
It continued, "We will carry out the self-rescue plan promised to the creditor group without a hitch and establish a stable and sustainable management foundation by improving the financial structure and strengthening the revenue base."