Tensions are escalating over plans to provide emergency operating funds between Homeplus Co. and Meritz Financial Group. Homeplus Co. said Meritz's proposed funding plan shows it "effectively has no intention to provide a loan," and again pressed for a 200 billion won loan necessary for rehabilitation.
On the 18th, Homeplus Co. issued a statement saying, "The final proposal sent by Meritz Securities contains unworkable conditions, confirming it effectively has no intention to provide a loan," and added, "It is also hard to accept Meritz's explanation that 'the condition for MBK Partners to directly raise 100 billion won is not a prerequisite for loan execution but merely an urging.'"
Earlier, Meritz proposed in an official letter sent the previous day to Homeplus Co. and MBK Partners that it would deposit 100 billion won into an escrow account by the morning of the 19th. It set a condition that MBK Partners or a designated company directly raise an additional 100 billion won to cover the remaining shortfall.
Homeplus Co. argued that Meritz effectively refused to provide the full amount of funding needed. Homeplus Co. said, "On top of MBK providing a 100 billion won joint guarantee for Meritz's loan, demanding an additional 100 billion won to be directly raised and provided is a practically impossible condition, which can only be seen as building a pretext for (Meritz) to refuse the loan."
It also criticized Meritz's proposed junior collateral arrangement as ineffective. Homeplus Co. said, "The proposal to agree to establish a junior security interest on real estate trust assets is not executable in the current situation, where existing second-lien lenders are refusing additional collateral due to the commencement of rehabilitation proceedings."
Homeplus Co. said, "If operations are promptly normalized through an additional DIP loan, Meritz will also be able to recover its claims in full and even pursue early recovery, making it the safest path," and urged, "The livelihoods and workplaces of partner companies, employees, and their families hinge on Meritz's decision. Please proactively accept the essential 200 billion won loan for rehabilitation."
On the same day, Homeplus Co. also emphasized the rehabilitation potential of remaining businesses such as big-box marts and online operations, citing the rapid sales recovery at Homeplus Express, where product supply has normalized. According to the company, Express sales from the 8th to the 17th rose about 48% from the same period a month earlier.