Homeplus, facing bankruptcy, has secured 200 billion won (approximately $1.5 billion) in emergency operating funds (DIP) to continue its restructuring process. However, the company still faces significant hurdles, including overdue wages, supplier payments, normalizing product supply, and selling remaining business units, making a return to normal operations a challenging prospect.
On July 16, Homeplus announced that its major shareholder, MBK Partners, and its largest creditor, Meritz Financial Group, have agreed on a funding plan to support the ongoing restructuring process. MBK Partners Chairman Kim Byung-joo will provide a joint guarantee for the 200 billion won DIP loan, and Meritz Financial Group will pursue funding based on this agreement. They also agreed to cooperate in the future approval process for the restructuring plan.
The labor unions representing the supermarket industry and general workers have also agreed to assist in reducing the company's financial burden during the closure of 37 stores. Homeplus plans to use the funds secured from the closures for purchasing products and normalizing operations.
Once the DIP funds are secured, Homeplus intends to immediately appeal the court's decision to terminate the restructuring process. If the appeal is accepted, the company plans to finalize its restructuring efforts and proceed with the sale of its headquarters, large supermarkets, and online business units to complete the restructuring process.
However, securing the 200 billion won does not guarantee Homeplus's return to normalcy. Even if the court accepts the immediate appeal, Homeplus must submit a revised restructuring plan for approval by the court and creditors by September 4, when the restructuring process is set to be extended.
There is also a high likelihood that the DIP funds will be quickly depleted due to overdue wages, severance pay, and unpaid supplier payments. As a result, industry experts suggest that this funding may only serve as a short-term solution to delay the liquidation crisis.
The sale of remaining business units, which is crucial for the restructuring, is also expected to be difficult. Given the sluggish supermarket industry, finding potential buyers willing to invest billions of won to acquire Homeplus is anticipated to be challenging.
If the court does not accept the immediate appeal, Homeplus may quickly enter bankruptcy proceedings.
Meanwhile, Homeplus stated that regarding the large supermarket stores that have been temporarily closed since July 13, it plans to establish a schedule for resuming operations after consulting with partner companies once the court's decision to extend the restructuring process is made.
* This article has been translated by AI.
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