JoongAng Group Vice Chairman Hong Jeong-do bows his head in apology at a press conference over a liquidity crisis affecting its subsidiaries and affiliates at the group's headquarters in Mapo District, Seoul, Monday.
Yonhap A court froze the assets of five JoongAng Group subsidiaries and affiliates, Monday, after they filed for corporate rehabilitation amid a financial crisis driven largely by the Korean media conglomerate's costly bids for exclusive broadcasting rights to major international sporting events.
The Seoul Bankruptcy Court issued preservative measures and a general prohibition order against JoongAng Holdings, the group's parent company, as well as JTBC, Contentree JoongAng, Megabox JoongAng and JoongAng P&I.
The JoongAng, the group's flagship newspaper, is said to pursue a restructuring workout process following the rehabilitation filings by the parent company and its affiliates.
The preservative measures bar the companies from disposing of assets or making preferential repayments before formal rehabilitation proceedings, while the general prohibition order freezes creditor claims, blocking enforcement actions, attachments or auctions until then.
