MBK Partners and Meritz Financial Group have reportedly reached a preliminary agreement on a 200 billion won emergency operating fund (DIP) to support Homeplus, which is facing bankruptcy.
According to the retail industry and the Homeplus labor union on July 15, the agreement stipulates that if Kim Byung-joo, chairman of MBK Partners, personally guarantees the full amount, Meritz Financial Group will provide the emergency operating fund loan.
The union stated, "The funding issue has been resolved," adding that Meritz Financial is expected to confirm the support at a board meeting on July 16, paving the way for the 200 billion won restructuring fund.
Min Byung-deok, chairman of the Democratic Party's Euljiro Committee, also mentioned the funding agreement during a rally for Homeplus workers and merchants held in Seoul on the same day.
Min said, "The 200 billion won issue will be resolved by July 16, allowing us to prevent Homeplus's bankruptcy and continue the restructuring process."
This agreement provides Homeplus with a foundation to continue its restructuring process through an immediate appeal to the court. However, the actual disbursement of funds will ultimately depend on the approval of Meritz Financial's board and the court's judgment.
Previously, the Seoul Bankruptcy Court decided to terminate Homeplus's restructuring process but left open the possibility of reconsideration if the 200 billion won in operating funds is secured by the appeal deadline of July 20.
MBK Partners, the major shareholder of Homeplus, and Meritz Financial, the largest creditor, had previously shown differences regarding the funding method and guarantee scope. The Homeplus union has been urging the presidential office, the National Assembly, and the MBK Partners headquarters to maintain the restructuring process.
* This article has been translated by AI.
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