Homeplus rehabilitation proceedings back on after securing 200 billion won loan

The hypermarket chain can now proceed with restructuring after the Seoul Bankruptcy Court initially scuttled the process over cash concerns.

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A person walks by a temporarily closed Homeplus branch in Seoul on July 20.

The Seoul Bankruptcy Court reversed its decision to terminate Homeplus's corporate rehabilitation proceedings on Tuesday after the retailer secured a funding plan backed by its largest shareholder and main creditor.

Corporate rehabilitation proceedings will resume, with the court also extending the deadline for approval of the retailer's rehabilitation plan.

The court had decided on July 3 to terminate the rehabilitation proceedings after Homeplus failed to secure the 200 billion won ($135 million) needed to continue the process.

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MBK Partners Chairman Michael ByungJu Kim, Homeplus's largest shareholder, agreed to provide a joint guarantee for the required 200 billion won as a condition of the retailer's rehabilitation. Meritz Financial Group, the retailer's largest creditor, also approved a 200 billion won debtor-in-possession loan, establishing a funding plan that satisfied the court's requirements.

Homeplus filed an immediate appeal Monday challenging the court's decision to terminate the rehabilitation proceedings and seeking to resume the process.


BY JEONG HYE-JEONG [[email protected]]

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

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