JKN, a prominent pageant owner, has formally initiated the process of filing for bankruptcy with the Central Bankruptcy Court in Thailand, as communicated through a notification to the Stock Exchange of Thailand (SET). The board of directors finalized the decision on Tuesday. They carried out the official filing on Wednesday. The primary objective of this bankruptcy filing is to seek legal protection from creditors. Subsequently, it is to pave the way for an unhindered business rehabilitation process.
In a comprehensive statement to the SET, JKN outlined a five-point rehabilitation plan for court approval. The first step involves restructuring its business and financial framework to address prevailing financial challenges and navigate a liquidity crunch. As part of this strategy, JKN plans to negotiate for lower interest rates on debt instalments, ensuring a sustainable revenue stream for ongoing operations.
JKN company actively seeking new funds
Additionally, JKN is actively seeking funds from new investors and financial institutions. The objective is to infuse capital into the business and enhance its financial standing. To further bolster its position, the company plans to divest non-performing assets. The proceeds from these divestitures will be utilized to fulfil obligations to creditors. Moreover, JKN is diligently preparing a comprehensive plan to ensure liquidity and financial stability during the rehabilitation process.
It is noteworthy that JKN’s decision to file for bankruptcy comes despite reporting higher assets than debts in its June report to the SET for the initial six months of this year. The company’s assets were recorded at 12.161 billion baht, surpassing its debts of 7.398 billion baht.
In a significant move in October, JKN made headlines by acquiring the prestigious Miss Universe brand for a substantial sum of 800 million baht. The company expressed a strong commitment to increasing the brand’s value by a minimum of 40%. In an earlier announcement in January, JKN had chosen El Salvador as the host country for Miss Universe 2023.
JKN’s strategic decision to seek bankruptcy protection underscores its proactive approach to addressing financial challenges and implementing a robust rehabilitation plan. In conclusion, the company remains focused on ensuring its future viability, growth, and sustained success in the dynamic pageant industry.