Media meltdown: JKN global struggles as shares drop amid debenture dilemma

JKN Global Media Plc’s shares plummeted to 1.67 baht during early trade as the company acknowledged its inability to fully repay the 609 million baht debenture due that day. This debenture is part of a seven-series set, totaling 3.36 billion baht.

After the disclosure on the Stock Exchange of Thailand (SET), JKN Global Media’s shares tumbled by 29.8%, a drop of 0.71 baht. The company cited challenges hindering the complete repayment of the principal and interest, totalling over 609.98 million baht.

To address this, JKN formulated a debt repayment plan for the JKN239A debentures, to be presented during a debenture holders’ meeting on September 29. This plan outlines the repayment of the debenture’s principal and interest.

At the meeting, JKN intends to seek a waiver for the current default on principal and interest repayment, aiming for an exception to the event of default and immediate debenture repayment.

Despite difficulties, JKN expressed confidence in using various funding sources to meet this year’s principal and interest repayment plan, anticipating enhanced liquidity through increased revenue in the latter half of the year. However, partner negotiations fell short of expectations.

Despite the challenges, JKN remains committed to fully repaying both principal and interest on the debenture, alongside other issued debentures.

JKN has six additional tranches of debentures due for interest payments this year, with upcoming dates including September 11, October 20, and November 10, 13, 15, and 24.

These six bonds range from 156.6 million to 800 million baht, maturing between 2024 and 2025. Asset Plus Securities represents two bond series, while Daol Securities represents five.

Mongkol Puangpetra, EVP of strategy research at Daol Securities, acknowledged JKN’s case as part of a series of bond payment defaults, following Stark Corporation and All Inspire Development. He emphasized the sensitivity of the current bond market, especially for high-yield and unrated bonds, which face higher funding costs due to increased interest rates.

Mongkol recommended closely monitoring JKN’s efforts to address payment issues, as delays could impact investment sentiment in the bond market, urging vigilance from investors.

JKN’s SET-traded shares concluded at 1.70 baht, down by 28.6%, with trading worth 341 million baht.

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