JKN Global Group, the Thai owner of the Miss Universe pageant, has filed for bankruptcy one year after buying it for $20 million and just days ahead of the 72nd Miss Universe pageant where transgender contestants are set to take to the stage.
The media company revealed the filing with a Thai bankruptcy court in a statement to the Thai Stock Exchange on Nov. 9, citing an ongoing “liquidity problem.”
The company’s petition for “business rehabilitation” was accepted by Thailand’s Central Bankruptcy Court following a board decision on Nov. 7, a separate document shows.
According to the filings, the media firm will seek to restructure its debt and resolve liquidity, adjust interest rates on existing debt, and extend the debt repayment period, allowing it to generate income from operations to repay all of its creditors and continue to operate its business.
“Submitting the rehabilitation petition will effectively solve the Company’s liquidity problem under legal mechanism and provide fair protection to all stakeholders,” the company wrote in the filings. “In addition, the Company can continue its operation while being under the rehabilitation plan which is a sustainable solution to the problem and to create profits in the future,” it concluded.
The Thai Bankruptcy Court has set the hearing date for the petition for Jan. 29, 2024.
JKN Global Group is led by Thai business tycoon and transgender rights advocate Anne Jakapong Jakrajutatip, who purchased the Miss Universe Organization for $20 million in 2022, taking over from IMG Worldwide LLC, a fashion, events, media, and marketing company which had held the Miss Universe Organization since 2015.
Former U.S. President Donald Trump had also been part owner of the pageant rights from 1996 until IMG’s purchase.
Transgender Competitors to Take Stage
Under Ms. Jakrajutatip’s helm, a series of changes were made to the Miss Universe pageant, including allowing married women and mothers to compete.
This year’s Miss Universe pageant is also slated to feature at least two transgender competitors for the first time ever: Miss Portugal, a 23-year-old flight attendant named Marina Machete, and Rikkie Kollé, who in July became the first transgender winner of Miss Netherlands.
In a statement to CNN earlier this month the Miss Universe Organization said: “Trans women are women, full stop. We are here to celebrate women, full stop. This has been true for more than a decade, and we’re proud to have made this change very early on, compared to other programs.”
However, the company has also been plagued with scandals, including allegations of pageant rigging following R’Bonney Gabriel’s win in the October 2022 Miss Universe competition. Those allegations led to the temporary suspension of the then-President of the Miss USA organization Crystle Stewart, however a subsequent investigation found no evidence suggesting the pageant was rigged.
The pageant has also faced allegations that Ms. Stewart’s then-husband, Max Sebrechts, vice president of Miss USA, had sexually harassed contestants, allegations that he vehemently denied. Both he and Ms. Stewart later parted ways with the pageant permanently.
Firm Encountered ‘Challenges’
In the past year, JKN’s share price has fallen by more than 80 percent.
November’s bankruptcy filing came after JKN Global Group revealed in September that it had missed a payment on a multi-million-dollar loan after the media firm “encountered challenges.”
In an August letter to the Thai Stock Exchange, officials acknowledged the financial liquidity management of the firm is “not in line with the expected forecast” and said it had considered various sources of funding but that negotiations with relevant partners had “failed to reach outcomes in line with company’s expectations.”
News of JKN Global Group’s financial woes come just days before the 72nd annual Miss Universe pageant is set to take place in El Salvador on Nov. 18.
However, in a statement published on JKN’s website, the company said the upcoming pageant will take place as planned despite the company’s bankruptcy filing.
“In response to the recent news, JKN Global Group has recently announced its strategic corporate financial management plan to cope with the current financial situation,” the statement said. “We are confident that the new plan will support all of the company’s business operations, including Miss Universe.”
“We confirm that Miss Universe 2023 will be held in El Salvador on 18 November 2023, where a top-notch experience provided to our fans will remain our top priority,” it went on to say. “We reaffirm that the legacy of Miss Universe will be carried on by JKN Global Group as envisioned from the beginning.”
From The Epoch Times
