9-11-2023 (BANGKOK) JKN Global Group Plc, the media company listed on the Stock Exchange of Thailand (SET) and the proprietor of the Miss Universe beauty pageant brand, has initiated a process of debt rehabilitation in an effort to address its current liquidity challenges.
The company formally filed a request for business rehabilitation with the Central Bankruptcy Court on Wednesday, as disclosed by JKN in a statement to the Stock Exchange of Thailand.
This move has had a significant impact on JKN’s stock value, with shares plummeting by the daily limit of 30% to reach an all-time low of 0.76 baht. With this decline, the company’s stock has now fallen by a staggering 81% over the course of this year.
JKN’s request for business rehabilitation is primarily aimed at renegotiating interest rates on its existing debt and extending the repayment period. The company has also put forth a proposal to act as the planner for the rehabilitation process.
Despite some investors agreeing to defer bond payments in September, JKN has encountered challenges due to global and domestic economic circumstances, leading to the pursuit of bankruptcy proceedings.
In a noteworthy development, Jakkaphong “Anne” Jakrajutatip, the company’s founder and its largest shareholder, announced in September that she had sold nearly 100 million shares through a “forced selling” mechanism to comply with margin accounting regulations after the share price suffered a more than 50% drop in a single week.
The rehabilitation plan outlines the company’s request for an extension of debt repayment schedules and the waiving of interest charges, thereby enabling JKN to generate income from its operations to service all its creditors. Additionally, the company will seek financial backing from new investors or financial institutions.
The plan also includes provisions for the sale of non-productive assets to raise funds for creditor payments. Under the court-supervised process, JKN can continue its operations, providing a sustainable solution to its ongoing liquidity issues, as stated in the company’s announcement.
As of June 30, JKN reported total liabilities amounting to 7.4 billion baht, with approximately half of this debt owed to bond investors.
Jakkaphong Jakrajutatip, a well-known media mogul and advocate for transgender rights, gained international attention when she announced her company’s acquisition of the Miss Universe Organization last year. At the time, she pledged to transform the competition, making it inclusive for married as well as transgender women, thereby establishing it as the world’s first beauty contest with genuine gender equality and inclusion.
The 2023 Miss Universe competition is scheduled to take place in El Salvador on November 18. This event, operated by the Miss Universe Organization, previously co-owned by Donald Trump between 1996 and 2002, has been a longstanding tradition since its inception in 1952.
