Kim Byeong-joo, chairman of MBK Partners, said on the 16th that he would contribute his personal funds to support small business owners who supply goods to Homeplus.
MBK Partners, the private equity fund managing shareholder of Homeplus, stated in a statement that it would fulfill its social responsibility regarding the restructuring proceedings of Homeplus and that as part of this, Chairman Kim Byeong-joo would ensure financial support for swift payments to small business trading partners, particularly those expected to face difficulties.
He added, "MBK Partners will ensure that Homeplus operates normally under the protection of the court and minimizes the damage to various stakeholders."
He also noted regarding the asset-backed short-term bonds (ABSTB) related to Homeplus’ card payment receivables that, "We will ensure that negotiations proceed smoothly between all creditors, including those related to the purchase debt, and Homeplus."
MBK Partners did not disclose the specific amount of the contributions. It is expected to specify the scale of contribution and support plan as the amount that needs to be provided to the small business trading partners of Homeplus is determined.
Earlier, after its credit rating dropped at the end of last month, Homeplus applied for corporate restructuring (court receivership) on the 4th as funding became difficult in the short-term funding market.
Concerns were raised regarding the normalization of Homeplus operations, and partner companies complained about delayed settlements. Among creditors, voices of opposition emerged, stating that the largest shareholder applied for restructuring proceedings without self-rescue efforts while seeking to discharge debt. Chairman Kim's decision to contribute his personal funds is seen as an attempt to quell this insecurity and opposition.
MBK Partners reiterated that applying for corporate restructuring was the best course of action. MBK Partners emphasized that, "We had to explore what the most certain way for more than 19,000 Homeplus employees, over 6,000 trading partners including stores and suppliers, to resume normal operations is," and noted that "Before Homeplus went bankrupt due to a sudden liquidity crisis, it needed to proactively take measures for normalization, and we judged that only restructuring proceedings could provide that solution."
Referring to the 'Timaf (Timon + Wemep)' incident that caused a massive insolvency crisis last year, he added that he thought "only through restructuring proceedings could the repayment of debts to creditors be possible as the company needed to operate normally."
He expressed deep apologies for causing concern to employees and various stakeholders due to Homeplus's restructuring proceedings, and emphasized, "We are concentrating our best support and efforts to ensure that Homeplus can quickly graduate from the restructuring process and return to its normal track."