Central Group affiliates file for rehabilitation after JTBC debt default

Central Group's holding company, JoongAng Holdings, along with its core affiliates Contenty Central and Megabox Central, have filed for corporate rehabilitation. The move comes just two days after JTBC, a prominent affiliate, defaulted on its short-term debt obligations totaling 20.6 billion won.

The applications for court receivership were filed with the Seoul Bankruptcy Court. Along with the main petitions, the companies also requested preservation orders and comprehensive injunctions. These legal measures aim to prevent any single creditor from prioritizing their claims and to secure time for the companies to formulate a rehabilitation plan.

Contenty Central is involved in broadcasting and content production, while Megabox Central operates a major cinema chain. The group's financial difficulties are seen as a manifestation of a broader liquidity crisis affecting its various businesses. JTBC's credit rating was recently downgraded from 'BBB/Negative' to 'CCC', indicating a high probability of default.

The court will now assess the viability of these companies, determining whether they have sufficient value to continue operating. If rehabilitation is deemed impossible, the court could order bankruptcy proceedings. A decision on whether to initiate the rehabilitation process is typically made within a month.