Seoul: Local broadcaster JTBC filed for court-led rehabilitation Monday, three days after defaulting on its debt obligations amid a severe liquidity crisis, legal sources said. JTBC, an affiliate of JoongAng Group, filed for the rehabilitation program with the Seoul Bankruptcy Court after failing to repay 20.6 billion won (US$13.6 million) in asset-backed loans at maturity.

According to Yonhap News Agency, the broadcaster has struggled with a major contraction in the TV advertising market, fueled by rapid shifts in the media landscape toward digital platforms and over-the-top streaming services like Netflix. On Sunday, JoongAng Holdings, the holding company of JoongAng Group, and the group's other affiliates -- ContentreeJoongAng, JoongAng P and I and Megabox JoongAng -- also submitted applications to commence rehabilitation proceedings.

As required by law, the court will soon set an interrogation date for JTBC representatives following the rehabilitation filing.