Homeplus has filed an immediate appeal against the Seoul Bankruptcy Court's decision on March 3 to terminate its rehabilitation proceedings.
On March 3, the Seoul Bankruptcy Court decided to terminate Homeplus' rehabilitation proceedings, citing a shortage of working capital. The court also said it could reconsider the decision if the company submitted a plan to secure 200 billion won in working capital. Later, as Michael ByungJu Kim, chairman of shareholder MBK Partners, agreed to provide a joint guarantee for the full 200 billion won to keep Homeplus' rehabilitation process going, Meritz Financial Group Inc. decided on March 17 to extend a 200 billion won DIP loan.
Homeplus said on the 20th that, with 200 billion won in working capital secured, it expects the rehabilitation process to be extended through the appeal. The company added that it plans to resume operations once the rehabilitation proceedings are extended and the DIP loan is disbursed. Homeplus has been temporarily suspending operations at its large-format stores since the 13th due to a depletion of working capital.
A Homeplus official emphasized, "We have cleared a major hurdle toward normalization by securing working capital, but rehabilitation is difficult without the cooperation and support of all stakeholders, including partner companies. From a win-win perspective, support is needed so that Homeplus can be revived."
Kim So-hyung, compact@sportschosun.com
This article has been translated by GripLabs Mingo AI.
