Meritz Financial Group, which provided a loan of 1.2 trillion won to Homeplus, which has entered corporate rehabilitation proceedings, stated that there are no issues in recovering the funds.
Meritz Financial Group explained in a statement on the 4th that "Meritz Financial Group holds collateral debt of 1.2 trillion won against Homeplus, but since the collateral value assessed by the trustee is about 5 trillion won, we believe there will be no issues in recovering the funds."
Earlier, in May last year, Meritz Securities, Meritz Fire and Marine Insurance, and Meritz Capital executed a priority loan of 1.2 trillion won to Homeplus. At that time, Homeplus provided revenue securities from a trust agreement made with a real estate trust company to Meritz Financial Group as collateral.
Typically, when entering corporate rehabilitation proceedings, a comprehensive prohibition order that bans compulsory execution on rehabilitation claims and rehabilitation collateral claims is issued. However, Meritz Financial Group noted that if the expiration of benefits (EOD) occurs with respect to revenue securities provided as collateral under the trust agreement, the right to dispose would arise irrespective of the corporate rehabilitation proceedings.
On the morning of that day, Homeplus applied for corporate rehabilitation proceedings in court. Homeplus said, "Recently, the credit rating has decreased, raising the possibility of funding-related issues," and "We applied for corporate rehabilitation proceedings to alleviate the burden of short-term debt repayments."
Homeplus stated that once corporate rehabilitation proceedings are initiated, the repayment of financial debts will be deferred, but the company plans to fully repay debts to partners and regular trading debts in accordance with the rehabilitation proceedings, while also ensuring that employee salaries will be paid normally.