Homeplus Co. said the prosecution's request for arrest warrants for Chairman Kim Byung-ju of MBK Partners and other executives is "a very serious step that puts even the company's last chance at risk."
Homeplus Co. said in a statement on the 8th that "at a critical and urgent moment when the success or failure of rehabilitation is at stake, requesting arrest warrants for the administrator, executives, and key management of the shareholder company who have overseen the entire rehabilitation process and played a practical role in normalization without sufficient verification of the facts is a decision that turns a blind eye to the arduous efforts made for rehabilitation," and stated accordingly.
Homeplus Co. explained, "Due to an unexpected downgrade in our credit rating, securing working capital previously obtained in the existing financial market has become virtually impossible, and we applied for rehabilitation as an unavoidable choice to prevent default," adding, "Homeplus Co. and shareholder MBK Partners did not foresee the downgrade in advance, nor did we prepare the rehabilitation process beforehand."
It added, "The asset-backed short-term bonds (ABSTB) for accounts payable securitization, which prosecutors take issue with, are financial products independently issued and sold by Shinyoung Securities after a separate credit evaluation," and "Homeplus Co. did not in any way participate in the issuance or resale transaction of ABSTB, and the shareholder company likewise did not make any decisions or give instructions related to the issuance."
Homeplus Co. said, "We are facing an acute liquidity crunch so severe that it is difficult to pay employees' salaries and social insurance normally—in short, we stand at a crossroads of survival," adding, "The commercial paper issue is something that can fully find a path to resolution if Homeplus Co. returns to normal."
It continued, "Since the commencement of the rehabilitation process, the current administrator has led consultations with all relevant institutions and stakeholders, including the court, creditor group, government, and political circles, and has played a key role in the sale process, which is virtually the only solution for normalizing Homeplus Co.," adding, "Requesting warrants for these individuals can only lead to a stoppage and confusion across the entire rehabilitation process."
Earlier, on the 7th, the Seoul Central District Prosecutors' Office's Anti-Corruption Investigation Division 3 requested arrest warrants for four people, including MBK Partners Chairman Kim Byung-ju, Vice Chairman Kim Kwang-il (Homeplus Co. co-CEO), Vice President Kim Jeong-hwan, and Managing Director Lee Seong-jin, on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Financial Investment Services and Capital Markets Act.