The period for approval of Homeplus Co.'s rehabilitation plan, as the company undergoes court receivership, has been extended again.
The 4th Bankruptcy Division of the Seoul Bankruptcy Court (Chief Judge Jeong Jun-young) on the 30th decided to extend the approval period for Homeplus Co.'s rehabilitation plan by two months, from May 4 to July 3. This is the second extension following the first on Mar. 3.
The court cited as the reason that the sale of the corporations-type supermarket (SSM) "Homeplus Express" institutional sector is substantially underway, with a stock and asset purchase agreement with the preferred bidder imminent.
According to the investment banking (IB) industry, Homeplus Co., the seller of Homeplus Express, was said to have narrowed differences with Harim Group over the terms of the business transfer, including price, and wrapped up negotiations the previous day.
The court said the Homeplus Co. administrator stated that, if this stock and asset purchase agreement is signed, the company plans to secure funds through additional DIP financing (new funding support for a rehabilitating company) and proceed with restructuring and a management normalization plan. The court added, "It is necessary to wait for the ongoing sale procedures and subsequent steps to be properly completed to enhance the feasibility of carrying out the rehabilitation plan."
The court expects the stock and asset purchase agreement to be signed and the down payment to be made in April, followed by the balance payment and closing in June.
Homeplus Co. is expected to revise the rehabilitation plan based on the sale proceeds from the Homeplus Express institutional sector and additional financing, and then submit it to the court. After the court convenes a stakeholders' meeting, the revised rehabilitation plan will undergo a hearing and a vote.
On the 21st, Samil PricewaterhouseCoopers, the lead manager for the Homeplus Express sale, closed the main bidding and selected Harim Group's NS Shopping as the preferred bidder. The sale price is said to be in the 200 billion won range.