JoongAng Ilbo [Yonhap News] 

JoongAng Ilbo announced that it had been processed for a first default after failing to meet a request for early redemption of commercial paper (CP) worth 22 billion won.

According to the Financial Supervisory Service's electronic disclosure system on the 19th, JoongAng Ilbo stated the previous day, "We confirm that an application for payment of the bill was presented by the creditor on the 18th, but due to insufficient funds in our accounts, we were unable to make the payment, resulting in a first default on the bill as of the 18th."

The commercial paper that defaulted this time is JoongAng Ilbo CP held by Hanyang Securities, with original maturity dates of December 7th of this year (12 billion won) and March 30th of next year (10 billion won).

However, amidst the recent liquidity crisis of the JoongAng Group, an event of default (EOD) occurred, prompting the creditor, Hanyang Securities, to seek early recovery. An event of default is a contractual clause that allows a creditor to demand repayment before maturity if certain events, such as a downgrade in credit rating, occur.

JoongAng Ilbo issued a statement the previous day regarding Hanyang Securities' early redemption request, stating, "JoongAng Ilbo, which is currently pursuing workout (corporate restructuring) with its main creditor bank, must maintain equity among all creditors." Therefore, it is difficult to make early repayment before maturity individually to a specific creditor."