Court allows cash-strapped JTBC to begin rehabilitation process

The Seoul Bankruptcy Court on Friday approved troubled local broadcaster JTBC's request to begin rehabilitation proceedings, allowing it to restructure its debts under court supervision. JTBC, an affiliate of media giant JoongAng Group, filed for rehabilitation on June 15, three days after failing to repay 20.6 billion won ($14.9 million) in asset-backed loans at maturity. The broadcaster has struggled with a major contraction in the TV advertising market, fueled by rapid shifts in the media landscape toward digital platforms and over-the-top streaming services like Netflix. The court cited other factors, such as massive fees for Olympic broadcasting rights secured by the broadcaster and the broader liquidity crisis in the JoongAng Group, in its decision. Under the court move, JTBC must submit its rehabilitation plan by Jan. 29 next year. The court has already ordered rehabilitation proceedings to begin for four other JoongAng Group units — JoongAng Holdings, ContentreeJoongAng, JoongAng P&I and Megabox JoongAng. In a statement, JTBC pledged to faithfully comply with the rehabilitation p