On the morning of the 4th, the Seoul Rehabilitation Court made a decision to commence the corporate rehabilitation procedure requested by Homeplus and decided to maintain the current joint representative system without appointing a separate administrator.
This decision to commence the rehabilitation procedure is based on the judgment that there are no issues with Homeplus's fundamentals, such as business performance and competitiveness, and it is noted that there is a need for a quick commencement of the rehabilitation procedure to restore stability as soon as possible.
As the rehabilitation procedure has commenced, the repayment of financial debt is postponed, but the general transaction debt with partners will be repaid in full, and all transactions conducted after the commencement decision will be settled normally, which will facilitate future transactions with partners, while employee salaries will be paid normally.
As the repayment of financial debt is postponed, the financial burden will be significantly reduced, and given Homeplus's cash-generating capacity, it is expected that cash flow will stabilize in the short term.
A Homeplus official said, "The court's swift decision will be a great help, and all employees and shareholders will work together to ensure that they do not let down expectations for Homeplus and strive to complete the rehabilitation procedure as quickly as possible."