MBK Partners, the private equity firm that controls Homeplus, and Meritz Financial Group reached the provisional agreement on Wednesday, according to financial industry sources. The injection, if approved, could reverse a court decision that had pushed the chain toward collapse.
Under the arrangement, MBK Chairman Kim Byung-ju is expected to personally guarantee Meritz's entire loan. Should he provide the guarantee, three Meritz affiliates — its insurance, securities and capital units — will convene board meetings on Thursday to weigh the debtor-in-possession financing.
The Seoul Bankruptcy Court terminated Homeplus' court-led rehabilitation on July 3, but said the ruling could be overturned if the company raises 200 billion won and files an immediate appeal before the July 20 deadline.
Homeplus abruptly shuttered all 67 of its stores this week, unable to cover electricity and gas bills.
Rep. Min Byung-duk of the ruling Democratic Party, who visited a protest by Homeplus merchants outside the former presidential compound on Wednesday, voiced confidence that a resolution was imminent.
"The 200 billion won issue will be resolved within tomorrow, and through this we will prevent Homeplus's bankruptcy and begin the work of reviving it in earnest," Min said.
The party plans to hold a parliamentary hearing on July 27, summoning MBK and Meritz over the Homeplus crisis, though the session is likely to be shelved if the company files its appeal.
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