MBK Partners decided to provide an additional joint guarantee worth 100 billion won to secure emergency operating funds for Homeplus Co., which is undergoing rehabilitation proceedings. As Meritz Financial Group, the largest creditor, has demanded a payment guarantee from MBK as a precondition for supporting operating funds, attention is on whether this decision can break the deadlock in the stalled financing talks.
MBK said on the 10th that it decided to provide an additional joint guarantee worth 100 billion won in connection with the emergency operating funds being pursued to maintain Homeplus Co.'s normal business operations and ensure the stable progress of the rehabilitation proceedings.
Homeplus Co. currently needs 200 billion won in emergency operating funds for merchandise purchases, payments to partner companies, and store operations. Homeplus Co. is pushing to sell the remaining business unit (M&A), but as it will take time for the actual sale proceeds to flow in, securing short-term liquidity is urgent.
MBK plans to provide a joint guarantee as a shareholder for 100 billion won, half of the total 200 billion won to be raised, if the operating funds are secured.
Industry watchers say the decision to offer this 100 billion won joint guarantee is tied to the recent talks with Meritz Financial Group over operating funds. Meritz, the largest creditor holding about 1.2 trillion won in loan claims against Homeplus Co., has reviewed emergency operating fund support while demanding a joint guarantee from MBK and management or an equivalent performance guarantee mechanism.
Earlier, Homeplus Co. asked Meritz for a short-term bridge loan, but Meritz maintained that a responsible guarantee by the largest shareholder was necessary, given that additional funding for a rehabilitating company could increase the risk of recovery on existing claims. In response, Homeplus Co. proposed alternatives such as pledging subordinated real estate revenue rights, but the two sides have differed over the guarantee terms.
In the industry, the decision to provide the 100 billion won joint guarantee is seen as effectively accepting a substantial part of Meritz's demands. Analysts say it could influence further creditor talks on additional funding, as the largest shareholder is extending additional credit to normalize the rehabilitation.
MBK said that including this guarantee, the total funds and credit it has shouldered for Homeplus Co.'s rehabilitation amount to 500 billion won. That includes Chairman Kim Byung-ju's personal contribution, existing joint guarantees, DIP financing (operating funds for a rehabilitating company), and various interest payment guarantees.
A representative at MBK said, "This additional joint guarantee means we will fulfill our responsibilities as a shareholder to the end for the normalization of Homeplus Co.'s rehabilitation," and added, "We believe rehabilitation and normalization are the most rational options in terms of job security for employees, protection of partner companies, and maximizing claim recovery."
The representative continued, "Homeplus Co.'s rehabilitation is only possible if all stakeholders— the company and its employees, shareholders, and creditors— play their roles," and emphasized, "We hope this decision will help secure emergency operating funds, restore normal operations, and successfully push forward the M&A of the remaining business unit."