Homeplus Co. again asked Meritz Financial Group for a bridge loan (ultra-short-term loan) and presented new collateral terms that include an MBK performance guarantee.
On the 21st, according to the industry, Homeplus Co. is in talks with Meritz for a bridge loan to secure operating funds needed until the proceeds from the sale of its supermarket institutional sector, Homeplus Express, flow in at the end of June.
Homeplus Co. said that in the talks that day, Kim Gwang-il, vice chairman of MBK Partners and the administrator, agreed to provide a performance guarantee. Homeplus Co. is also said to have proposed additional collateral options to Meritz.
Homeplus Co. said, "Today is the May payday, but we paid only part of the April wages and are facing major difficulties in product supply," adding, "The bridge loan is essential funding for Homeplus Co. to overcome the immediate challenges."
It added, "The funds will also help improve creditors' recovery rates by normalizing the company," and "We expect Meritz to review positively and act immediately, as we have proposed every possible option available to Homeplus Co."
Homeplus Co. sold Homeplus Express to NS Home Shopping, but concerns are rising that it is hard to hold out even about a month until the sale proceeds come in next month. On the 10th, it temporarily suspended operations at 37 of its 104 hypermarkets to normalize operations and secure liquidity.