(ATTN: ADDS JTBC's statement in last three paras)
SEOUL, Aug. 28 (Yonhap) -- 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 (US$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 proceedings.
"Following numerous consultations, beginning the rehabilitation process was deemed more effective even for the sake of protecting creditor rights," the company said.
"Going forward, JTBC will do its best to faithfully comply with the rehabilitation process. The management and all employees will strive to normalize business through a swift sale," it added.
This undated file photo, provided by JoongAng Group, shows the headquarters of broadcaster JTBC (R) and the JoongAng Ilbo newspaper in western Seoul. (PHOTO NOT FOR SALE) (Yonhap)