The Democratic Party of Korea "Homeplus situation resolution task force (TF)" will visit the Seoul Bankruptcy Court next week to formally request an extension of the deadline to submit Homeplus Co.'s rehabilitation plan.
According to political circles on the 31st, Commissioners of the Democratic Party of Korea Homeplus situation resolution TF (Director General Yoo Dong-soo) plan to formally convey, through a meeting with the Seoul Bankruptcy Court around Nov. 5, their view that the deadline for submitting the rehabilitation plan should be additionally secured. The TF says that, because the livelihoods of employees of partner firms and suppliers—numbering as many as 100,000—are at stake, sufficient time must be secured to search for a buyer.
A lawmaker belonging to the TF said, "It is important to further increase the time for mergers and acquisitions (M&A) before the approval of the corporations' rehabilitation plan," and noted, "We plan to visit the court next week to demand an extension of the submission deadline for the rehabilitation plan, which is until Nov. 10."
Floor leader Kim Byung-kee of the Democratic Party of Korea and TF Commissioners previously, in a closed-door meeting in Sep., secured a promise from Chairman Kim Byung-ju of MBK Partners to "hold off on closing 15 stores and other outlets until a buyer is decided." The TF's visit to the rehabilitation court is likewise read as the ruling party moving proactively to block the liquidation of Homeplus Co.
Homeplus Co. is also said to plan to ask the court to again extend the deadline for submitting the rehabilitation plan. However, from the court's standpoint, it is burdensome to grant an additional extension. The court has already extended the submission deadline four times and must consider creditor harm and the decline in asset value.
In this situation, while the court schedule lies in the realm of judicial procedure, the ruling party is seen as stepping to the fore given the significant socioeconomic ripple effects. With two entities, including AI firm Harex InfoTech, submitting letters of intent to acquire on the day, the need to extend the deadline for submitting the rehabilitation plan has grown.
The Democratic Party of Korea TF plans to visit the court while also urging MBK to make a responsible M&A decision, preparing for a prolonged situation.