JKN Global Group, the Thai media company and owner of the Miss Universe beauty pageant, has officially filed for bankruptcy. This announcement comes as the company grapples with a pressing "liquidity problem," revealing a financial hurdle that has raised eyebrows across the media landscape.
JKN Global Group, helmed by media mogul and transgender rights advocate Anne Jakapong Jakrajutatip, acquired the Miss Universe pageant from former US President Donald Trump in 2022 for a substantial sum of $20 million. This acquisition marked a notable chapter in the pageant's history, placing it under the ownership of an influential figure.
Bankruptcy Filing
The decision to file for bankruptcy was communicated through an official statement to the Thai Stock Exchange. The statement, released two months after the company missed a deadline to repay bonds totaling around $12 million, outlined the board of directors' resolution to submit a comprehensive business rehabilitation plan to the kingdom's bankruptcy court.
JKN Global Group expressed optimism that the submission of the rehabilitation petition would serve as a legal mechanism to address the liquidity issue effectively. The company emphasised that this move aims to provide fair protection to all stakeholders involved in the Miss Universe brand.
Beauty-Contest Brand Acquisition and Financial Implications
Last year, JKN Global Group Pcl made headlines by acquiring the iconic Miss Universe beauty pageant brand for a staggering $20 million. The move was viewed as a significant investment in the entertainment industry, aligning with the company's commitment to diversifying its portfolio.
However, the recent financial turbulence has prompted JKN to seek a debt-repayment extension and an adjustment in interest rates, underscoring the complexities inherent in managing a high-profile beauty contest brand amidst economic uncertainties.
Business Rehabilitation Plan
The impending business rehabilitation plan, to be reviewed by the bankruptcy court, underscores JKN Global Group's commitment to navigating these challenging financial waters. According to the company's statement, operations will persist under the proposed plan, signalling a determination to overcome the current financial setback.
Market Impact
The financial struggles are reflected in JKN Global Group's share price, which has witnessed a substantial decline of nearly 80 percent over the past 12 months, reaching 0.77 baht as of the latest update. This significant market fluctuation adds a layer of complexity to the broader narrative surrounding the Miss Universe brand, raising questions about its future trajectory under the current ownership.
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