Creditors of JoongAng Ilbo Co. have selected the DaouKiwoom–CJ consortium as the preferred bidder in a final round of bidding, following an auction process for the debt-laden newspaper publisher. Sources cited by Korea Times say the consortium beat Orion and other contenders. The overall deal is reported to be in the range of 400 billion won to 500 billion won, with the selection coming after bidding is completed earlier in the day, according to industry reporting.
JoongAng Ilbo entered a creditor-led debt workout program in July after its parent, JoongAng Group, faced liquidity problems. Under the workout, creditors suspend debt collection for three months, helping the company avoid court-led rehabilitation proceedings while it negotiates restructuring. The sale is structured so the buyer gains control by acquiring newly issued shares, rather than purchasing the existing controlling stake from JoongAng Holdings, which holds 64.7% of JoongAng Ilbo and is controlled by the founding family.
Yonhap and Korea Times both frame the process as part of an ongoing effort by creditors to resolve JoongAng Ilbo’s financial strain, with Yonhap also reporting that a preferred bidder was likely to be chosen this month.
