The deadline for approval of Homeplus Co.'s rehabilitation plan, which is undergoing corporate rehabilitation proceedings, came due on the 3rd. As Homeplus Co. submitted a revised rehabilitation plan, the process moved to the feasibility review stage by the court and the examiner, but the issue of raising an additional 200 billion won has not been resolved, leaving whether to extend the deadline as a last-minute sticking point.
The Seoul Bankruptcy Court said on the 30th that a revised rehabilitation plan for Homeplus Co. was submitted at 6:58 p.m. that day. The court explained that after review by the bench and the examiner, if the feasibility of the revised plan is recognized, it will be put to a vote at a stakeholders' meeting, and if not, it is expected to decide to exclude the plan and terminate the rehabilitation proceedings.
Currently, the approval deadline for the Homeplus Co. rehabilitation plan is through the day, but the statutory deadline is Sept. 4. If the bench determines more time is needed to review the revised plan, it can further extend the approval deadline. The court also said it may extend the deadline to review the revised plan.
Homeplus Co. is said to have prepared an amended version of its previously revised rehabilitation plan that reflects the effect of improved business viability through self-rescue efforts. The amendment reportedly states that since the commencement of the rehabilitation proceedings, the number of stores fell from 126 to 67 and the workforce was reduced to about half, cutting various expense by 1.2 trillion won compared with just before the filing. It also reportedly includes an outlook that if product supply normalizes, operating profit could reach the 80 billion won range, and within three years operating profit could increase to 150 billion won.
However, the issue of raising additional funds, which the court previously flagged, remains. Regarding the plan to raise an additional 200 billion won included in the existing rehabilitation plan, the court viewed that no realistic plan had been presented and requested opinions on excluding the plan and terminating the rehabilitation proceedings. The amendment is also said not to include a plan to secure additional funds.
Homeplus Co. employees and the labor union say that if corporations are liquidated, the livelihoods of more than 100,000 people, including partner firms, could be put at risk, and that an extension of the approval deadline for the rehabilitation plan is necessary. In contrast, Meritz Financial Group is said to have capped support at 100 billion won, conditioned on a guarantee by MBK Chairman Kim Byung-ju. MBK is reportedly saying it is difficult to accept that.
The bench and the examiner plan to comprehensively review funding feasibility, expense reduction effects, and prospects for normalization of operations to decide whether to put the revised plan to a vote at a stakeholders' meeting. The revised plan submitted ahead of the July 3 approval deadline has become the turning point that will determine whether it serves as grounds to extend Homeplus Co.'s rehabilitation proceedings or leads to a decision to terminate them.