'Default' JTBC "No 200 billion won fund outflow..Heavy sense of responsibility"[Full Text]

*This content was translated by AI.

JTBC responded to claims made by some members of the joint legal team representing creditors of the Jungang Group.

On the 13th, through an official statement, JTBC said, "We sincerely apologize for causing concern to JTBC bond investors," and clarified the facts regarding allegations that it issued new capital securities worth 400 billion won just before the fiscal year-end to avoid complete capital erosion.

JTBC stated, "Regarding the issuance of new capital securities and the execution of new capital loans, we appropriately disclosed our financial status in accordance with Korean Accounting Standards and complied with the Capital Markets Act. Furthermore, Studio Aye Jungang, which borrowed 33 billion won from JTBC, is a 100% subsidiary that produces JTBC's entertainment programs; the 13 billion won loan was made solely for essential production costs and other purposes to secure program supply from JTBC." It further emphasized, "The remaining 20 billion won was converted from liquidated bonds issued by Studio Aye Jungang through JTBC's debt guarantee, meaning no actual funds were outflowed."

JTBC added, "We recognize our heavy sense of responsibility and will open a communication structure with investors to the fullest extent, making every effort to protect investor rights."

Previously, on the 8th, JTBC announced full payment of unpaid appearance fees for entertainment programs. JTBC stated, "Due to court approval procedures, we completed payments last week for dispatch fees and service charges that had been unpaid," and added, "Based on the comprehensive approval recently granted, we have also completed payments today for some unpaid appearance fees and external production costs for entertainment programs."

It further bowed its head in apology, saying, "We apologize to performers and affiliated companies for the unavoidable delays in payment schedules while waiting for court decisions."

Meanwhile, on the 12th of last month, JTBC fell into a state of default after failing to repay 206 billion won in liquidated loans at maturity. Affiliates including Jungang Holdings, Contentree Jungang, Jungang P&I, and Megabox Jungang sequentially filed for commencement of rehabilitation procedures.

The Seoul Bankruptcy Court approved an autonomous restructuring program to support voluntary restructuring between companies and creditors for JTBC on the 30th of last month, while deciding to commence rehabilitation proceedings for the other four affiliates.

We are providing JTBC's position regarding the claims made by the joint legal team representing victims of the Jungang Group bond crisis during their press conference today.

First, we sincerely apologize to all JTBC bond investors for causing concern.

Regarding the facts surrounding allegations that our company issued new capital securities worth 40 billion won just before the fiscal year-end to avoid complete capital erosion, here is the situation:

JTBC appropriately disclosed its financial status in accordance with Korean Accounting Standards and complied with the Capital Markets Act regarding the issuance of new capital securities and the execution of new capital loans.

Furthermore, Studio Aye Jungang, which borrowed 33 billion won from JTBC, is a 100% subsidiary that produces JTBC's entertainment programs; the 13 billion won loan was made solely for essential production costs and other purposes to secure program supply from JTBC.

The remaining 20 billion won was converted from liquidated bonds issued by Studio Aye Jungang through JTBC's debt guarantee, meaning no actual funds were outflowed.

JTBC recognizes its heavy sense of responsibility and will open a communication structure with investors to the fullest extent, making every effort to protect investor rights.

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*This content was translated by AI.