JoongAng Ilbo Co., a major South Korean newspaper publisher, has won approval for a creditor-led debt workout program.
JoongAng Ilbo applied for the program on June 19 after failing to repay 22 billion won in commercial paper early. Main creditor Hana Bank and other lenders approved the scheme after consultations.
The approval suspends debt collection efforts for three months. The company will draw up a normalization plan following due diligence by an accounting firm.
Self-rescue measures include drastic cost cuts, asset sales and the sale of the controlling stake. JoongAng Holdings owns 64.7 percent of JoongAng Ilbo.
