media company-preferred bidder

▲ The headquarters of the JoongAng Ilbo (L) and JTBC in Seoul (Yonhap)

SEOUL, Oct. 19 (Yonhap) -- Creditors of JoongAng Ilbo Co. are expected to pick a preferred bidder for one of the major South Korean newspaper publishers this month as they closed bidding for the debt-laden company earlier in the day, industry sources said Monday.

According to the sources, Orion and five others have submitted their bids to take over JoongAng Ilbo, a deal estimated at between 400 billion won (US$300 million) and 500 billion won.

Main creditor Hana Bank and other lenders reached the decision after consultations.

In July this year, JoongAng Ilbo entered the debt workout program led by main creditor Hana Bank and other lenders amid liquidity problems at its parent, JoongAng Group.

Creditors' debt collection has been suspended for three months, allowing the company to avoid court-led rehabilitation proceedings.

JoongAng Holdings owns a 64.7 percent stake in JoongAng Ilbo and is controlled by the founding family of JoongAng Group.

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