Homeplus Co. said on the 5th that, after the Seoul Bankruptcy Court approved a 200 billion won debtor-in-possession (DIP) loan for emergency operating funds, the money is scheduled to be deposited the same day.

A notice about a temporary closure is posted at the entrance of a Homeplus Co. store in central Seoul on the 5th./Courtesy of News1

Earlier, on Aug. 3, the Seoul Bankruptcy Court decided to terminate the rehabilitation proceedings, citing a lack of operating funds needed to carry out the rehabilitation plan. Homeplus Co. signed a 200 billion won DIP loan agreement with Meritz Financial Group and filed an immediate appeal.

The court later reversed the decision to terminate the rehabilitation proceedings and extended the deadline to approve the rehabilitation plan to Sept. 4. The DIP loan is a follow-up measure to that decision.

Homeplus Co. plans to finalize talks with suppliers and delivery firms as soon as the funds are deposited and resume operations at 67 stores that are temporarily closed. It plans a soft opening on the 7th, followed by operational checks and improvements, and a full opening on the 13th.

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