The tug-of-war between MBK Partners and Meritz Financial Group over emergency working capital to revive Homeplus Co. continues. This time, MBK Partners rebutted Meritz Financial Group's recent claims regarding Homeplus Co.'s rehabilitation proceedings.
On the 19th, MBK Partners said in a statement that the key to reviving Homeplus Co. is not the financial capacity of the private equity firm but whether Meritz provides additional working capital.
MBK Partners said, "Homeplus Co. currently needs 200 billion won in emergency working capital (DIP financing) to maintain normal operations and pursue mergers and acquisitions (M&A) of the remaining business units, and Meritz, the largest creditor, should provide the funds."
It also said Meritz Financial Group is exaggerating MBK Partners' financial situation. The revenue estimates Meritz presented are not profits generated from the Homeplus Co. investment itself but only hypothetical carried-interest projections calculated based on unrealized valuations of multiple funds, it said. It added that the management fees MBK Partners received related to the Homeplus Co. investment have not reached 10 billion won since the 2015 acquisition.
MBK Partners also claimed that Meritz is downplaying its actual burden regarding the scale of support for Homeplus Co. Citing Chair Kim Byung-ju's 40 billion won cash contribution and a joint guarantee for a 60 billion won DIP loan, as well as providing a 100 billion won DIP loan and waiving claims, it said it is bearing a significant financial burden. It added that of the 200 billion won in DIP financing Meritz requested, it has already expressed willingness to provide a joint guarantee for 100 billion won. The implication is that MBK Partners has done its part.
An MBK Partners official said, "Homeplus Co. is not a mere collateral but a going concern tied to the livelihoods of more than 10,000 employees, partner companies, and small business owners," adding, "If Meritz wants Homeplus Co. to recover, it should demonstrate its commitment by executing 200 billion won in DIP financing."