The court has permitted Homeplus, which has entered corporate rehabilitation proceedings, to prepay 345.7 billion won, which is the amount it needs to pay to suppliers for goods and services from December last year to February this year.
Debt repayment for corporations undergoing rehabilitation often takes several months at the earliest and, at worst, exceeds a year after the initiation of rehabilitation. However, Homeplus made some debt repayments just three days after the start of rehabilitation. Considering the significant impact of Homeplus on our economy, the court exceptionally allowed early repayment only for commercial debt.
The 4th Division of the Seoul Rehabilitation Court (Chief Judge Jung Joon-young, presiding Judge Park So-young) announced on the 6th that it has granted early repayment to the partner companies requested by Homeplus on the 7th. This comes just three days after the court commenced the rehabilitation proceedings for Homeplus on the 4th.
Previously, Homeplus applied for permission to make early repayment for goods and services totaling 345.7 billion won that it was required to pay to suppliers from December last year to February this year.
In response, the Seoul Rehabilitation Court noted in a briefing material sent to reporters regarding the permit decision that "the necessity is recognized for prioritizing protection of partner companies, maintaining essential existing transaction relationships for the continuous and normal operation of the debtor." It further stated, "The decision to grant permission was made for the entire amount requested by Homeplus."
Meanwhile, Homeplus applied for the commencement of rehabilitation at 12:03 a.m. on the 4th, and the court made a decision to commence within 11 hours. Although Homeplus is not currently in a state of incapacity to pay, it is reported that it proactively filed for rehabilitation due to concerns over rising interest and financial costs after domestic credit rating agencies downgraded its credit rating from A3 to just above speculative grade at A3- on February 28.
The court accepted the rehabilitation application as a proactive restructuring measure, deciding to repay commercial debt as before the rehabilitation and to proceed with the rehabilitation process focused on financial debt.