MBK Partners, the private equity fund (PEF) manager that is the largest shareholder of Homeplus Co., will inject an emergency 100 billion won to normalize Homeplus Co., which has fallen into a liquidity crisis. It decided to execute ahead of schedule the funds it had promised to provide after the merger and acquisition (M&A) of Homeplus Co. is completed.
MBK Partners issued a statement on the 16th, saying, "We recognize as very grave the situation facing Homeplus Co., including delays in paying salaries to employees and the suspension of operations at some stores due to the recent deterioration in liquidity," and noted, "To secure the minimum time needed for Homeplus Co. to get back on its feet, we decided to shoulder 100 billion won out of a total 300 billion won in emergency operating funds (DIP financing)."
This support extends the divestment support plan that MBK Partners had originally promised. Earlier, before court approval of the rehabilitation plan in Sep., MBK Partners released that it would provide up to 200 billion won during the M&A process to ease the acquirer's burden.
MBK Partners explained, "Given the urgency that has reached the point of having to delay salary payments, we decided to participate first in the emergency operating funds loan even before the M&A is concluded."
MBK Partners said, "We hope that, starting with this decision, talks on the emergency operating funds loan can be wrapped up quickly," and emphasized, "If this is achieved, the prospects for Homeplus Co.'s rehabilitation could be raised by a notch." MBK Partners is currently in talks with Meritz Group and the Korea Development Bank on supporting Homeplus Co. with DIP financing.
It continued, "If the emergency operating funds are injected in a timely manner, it could lay the minimal groundwork for rehabilitation, including not only salary payments but also stabilizing store operations and restoring transactions with partner companies," adding, "This is not a choice for the benefit of any single party but a choice to reduce the burden and damage for all stakeholders who have been with Homeplus Co."