JoongAng Ilbo, workout begins… more than 75% of creditors in favor

JoongAng Ilbo will enter a corporate restructuring process, known as a workout, through negotiations with its creditor group. At the first council meeting held on the 10th, the creditor group decided to begin the workout after more than 75% of the creditors by claim amount voted in favor. JoongAng Ilbo applied for the workout to Hana Bank, its lead creditor bank, on the 19th of last month. Going forward, it will prepare a management normalization plan based on an audit by an accounting firm, then carry it out with the consent of the creditor group. The company is known to have proposed costcutting measures such as suspending new hiring, returning part of executives' salaries, stepping down some executives, reducing the scale of newspaper publication, reexamining investment spending, and suspending inhouse events. At the same time, it also laid out a plan to increase sales by 2029 through measures such as expanding advertising and strengthening paid digital subscriptions. It also included plans to raise funds by selling its subsidiaries, owned land, factories, and hub offices. Although JoongAng Ilbo posted a profit last year, its borrowings have increased significantly in the course of supporting affiliates.