The court has commenced hearings for representatives of Central Group affiliates that have applied for rehabilitation procedures. The application of the Autonomous Restructuring Support (ARS) program requested by JTBC is seen as a key factor in determining the direction of Central Group's restructuring.
The Seoul Rehabilitation Court's Second Division, led by Judge Jeong Jun-young, began the hearings at 10 a.m. on June 23, starting with the representative of Central Holdings.
Hong Jeong-do, Vice Chairman of Central Group, and Kim Jin-kyu, CEO, arrived at the court at 9:54 a.m. in their capacity as representatives of Central Holdings and Central P&I. The two did not make any statements to the press and headed directly to the hearing room.
Following Central Holdings, the court is scheduled to hear representatives from Central P&I at 11 a.m., JTBC at 2 p.m., MegaBox Central at 3 p.m., and Contentree Central at 4 p.m.
Judge Hong Jun-seo will preside over the cases involving Central Holdings, Central P&I, and JTBC, while Judge Kwon Seong-woo will oversee the cases for MegaBox Central and Contentree Central.
The representative hearings are a procedure to determine whether to initiate rehabilitation processes. The court will confirm details regarding the debtor's overview, asset and liability status, the reasons for the rehabilitation application, and future normalization plans before deciding on the initiation of the rehabilitation process.
There is significant interest in the ARS program requested by JTBC during these hearings. The ARS program allows the court to postpone the decision on initiating rehabilitation procedures for a certain period, enabling companies and creditors to negotiate restructuring autonomously.
JTBC has requested the application of the ARS program alongside its rehabilitation application. If accepted by the court, the initiation of the rehabilitation process could be delayed for up to three months while negotiations with creditors take place.
The liquidity crisis faced by Central Group affiliates came to light when JTBC failed to repay 20.6 billion won in liquidity loans due on June 12. Subsequently, Central Holdings, Contentree Central, Central P&I, and MegaBox Central applied for rehabilitation procedures on June 14, with JTBC filing for rehabilitation the following day.
On June 15, the Seoul Rehabilitation Court issued preservation orders and comprehensive injunctions for these affiliates. As a result, procedures for compulsory execution, provisional seizure, injunctions, and auctions are restricted until a decision is made on the initiation of rehabilitation processes.
The court will review the contents of the hearings to assess the necessity of initiating rehabilitation procedures for each company and the application of JTBC's ARS program.
* This article has been translated by AI.
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