JoongAng Ilbo vows to follow through on self-rescue plan as workout begins

JoongAng Ilbo said it will carry out its self-rescue plan and business normalization measures without disruption following the launch of a corporate restructuring workout.

In a statement released Friday, the newspaper said it "deeply thanks the creditors who rallied together for the company's management normalization" and pledged to "cooperate faithfully with the accounting firm's due diligence and the formulation of a business normalization plan."

The company added that it would "implement the self-rescue plan promised to creditors without a hitch and establish a stable, sustainable management foundation through improved financial structure and a strengthened revenue base."

JoongAng Ilbo also committed to closer communication with creditors throughout the workout process. "We will enhance management transparency and maintain close communication with creditors," the company said, adding that it would "faithfully protect creditors' rights and interests and pursue all procedures with a sense of responsibility."

The company said its print and digital news operations would continue normally. JoongAng Ilbo said it intends to use the workout "as an opportunity to fundamentally improve our financial structure and make a fresh leap forward."

JoongAng Ilbo filed for the workout on June 19 after a liquidity crisis emerged at the JoongAng Group.

Earlier, the company had submitted a self-rescue plan to creditors that included sustained operating cash flow generation through deep cost cuts, the sale of real estate holdings and the sale of a controlling stake.