On Tuesday, hearings began for representatives of five companies affiliated with the JTBC and Central Group conglomerate that had filed for bankruptcy protection.
The Seoul Bankruptcy Court’s Rehabilitation Division 2, led by Chief Judge Jung Jun-young, commenced proceedings for Central Holdings at 10:00 a.m. (Korean time).
The parties involved entered the courtroom around 9:54 a.m. (Korean time), evading media attention. Hong Jeong-do, Vice Chairman of the Central Group, was reportedly in attendance.
Following Central Holdings, hearings were scheduled for other affiliates: Central P&I at 11:00 a.m. (Korean time), JTBC at 2:00 p.m. (Korean time), Mega Box Central at 3:00 p.m. (Korean time), and Contentree Central at 4:00 p.m. (Korean time).
Judge Kwon Seong-woo is presiding over the cases for Mega Box Central and Contentree Central, while Judge Hong Jun-seo is handling Central P&I, Central Holdings, and JTBC.
Under the Bankruptcy Code, the court is required to conduct hearings for the debtor or their representatives upon receiving a bankruptcy protection filing.
During these sessions, the court will inquire about representatives’ personal information, company overview, asset and liability status, and reasons for seeking bankruptcy protection. The court will then determine whether to initiate the restructuring process.
Post-hearings, the court is expected to rule on proceeding with the Autonomous Restructuring Support (ARS) program requested by JTBC.
The ARS program allows for a temporary halt in bankruptcy proceedings, enabling companies and creditors to negotiate repayment plans independently. Among the five companies, only JTBC has applied for this program.
If negotiations through the ARS process prove successful, parties can enter into a voluntary agreement and withdraw the bankruptcy protection application. The initial suspension period is one month, extendable by two months based on negotiation progress, allowing a maximum three-month pause.
Earlier, the five Central Group affiliates filed for bankruptcy protection with the Seoul Bankruptcy Court on June 14-15, submitting requests for provisional measures and comprehensive injunctions.
In response, the court issued provisional measures and comprehensive injunctions on June 15. Provisional measures prevent debtors from disposing of assets or providing collateral or settlements to creditors, while comprehensive injunctions prohibit creditors from pursuing forced collections, provisional attachments, or similar actions against the debtor.
The financial crisis of the Central Group affiliates became public when JTBC defaulted on 20.6 billion KRW (approximately 13.75 million USD) in securitized loans on June 12. This default stemmed from poor performance and an inability to refinance maturing securitized assets.
