An emergency financing deal for 200 billion won in operating funds that will decide whether bankrupt Homeplus Co. can be revived has been tentatively agreed. If Meritz Financial Group holds a board meeting on the 16th to approve the funding agenda, Homeplus Co. will file an immediate appeal with the court and be able to continue its rehabilitation proceedings.
According to the retail industry and the Homeplus Co. General Union on the 15th, MBK Partners, the majority shareholder of Homeplus Co., and Meritz Financial Group, its largest creditor, reached a tentative agreement that day on a plan to provide 200 billion won in emergency operating funds.
Meritz Financial plans to hold a board meeting on the 16th to finalize whether to provide additional funds. If the agenda passes, Homeplus Co. will secure 200 billion won in emergency operating funds. The guarantee issue, which had been the biggest sticking point, is also said to have been resolved. Kim Byung-ju, chairman of MBK Partners, is reported to have agreed to provide a personal guarantee for the entire 200 billion won.
At the "Homeplus workers and merchants general rally" held in Seoul that day, the possibility of resolving the funding issue was also mentioned publicly. Min Byung-deok, head of the Democratic Party of Korea Euljiro Committee, said at the event, "We held close consultations with the leadership of the mart union this morning," and added, "By tomorrow (the 16th), the 200 billion won issue will be resolved, preventing Homeplus Co.'s bankruptcy and allowing full-fledged rehabilitation efforts to begin."
Earlier, the Seoul Bankruptcy Court decided to discontinue Homeplus Co.'s rehabilitation proceedings. However, it left room to resume the proceedings if 200 billion won in operating funds is secured by the 20th, the deadline for an immediate appeal.
Since then, funding talks between MBK Partners and Meritz Financial have stalled, raising concerns about Homeplus Co.'s bankruptcy. The union has visited the presidential office, the National Assembly, and MBK Partners' headquarters, urging that the rehabilitation proceedings continue. Since the 13th, Homeplus Co.'s headquarters and 67 stores nationwide have been temporarily closed.