Miss Universe pageant owner files for bankruptcy in Thailand

JKN Global Group, a Thai media company that owns the Miss Universe beauty-pageant brand, has petitioned for debt rehabilitation as it seeks to solve a liquidity crunch.

JKN submitted the business rehabilitation request with Thailand’s Central Bankruptcy Court on Wednesday (Nov 8), it said in an exchange filing. The company petitioned to adjust interest rates on existing debt and extend its debt repayment period, and proposed itself as a planner for the process.

JKN, which bought the Miss Universe Organization for US$20 million last year, has delayed some payments for its bonds, citing global and domestic economic challenges. The company is seeking the bankruptcy proceeding even after some investors in September agreed to extend the payment of due bonds.

The rehabilitation plan includes the request for extension of debt repayment and waiver of interest charges to enable JKN to generate income from operations to service all creditors, according to the statement. The company will also look for financial support from new investors or a financial institution.

The plan will offer a guideline for the sale of non-productive assets to raise funds to pay creditors. Under the court’s proceeding, the company can continue operating, which is a sustainable solution to JKN’s current liquidity problem, it said.

As of Jun 30, JKN had total liabilities of about 7.4 billion baht (S$282 million), almost half of which were owed to bond investors, according to a filing. The stock dropped by the daily limit of 30 per cent to a record low 0.76 baht, extending this year’s slump to 81 per cent. BLOOMBERG