Homeplus requests operating funds of 2,000billion won, with MBK 1,000billion won joint guarantee
Homeplus requested emergency operating funds worth 2,000billion won to maintain operations and sell its remaining business units. Majority shareholder MBK Partners announced that it would provide an additional joint guarantee for 1,000billion won of this amount on 10.
Homeplus said on 10that it needed emergency operating funds worth 2,000billion won to maintain business activities and pursue the sale of its remaining business units. Homeplus explained that it would use the funds to continue purchasing merchandise, paying suppliers, and operating its stores. Majority shareholder MBK Partners announced on the same day that it would provide an additional joint guarantee worth 1,000billion won.
Homeplus has been requesting loans from financial institutions to raise operating funds. The company said that once it secured the necessary funds, it would proceed simultaneously with store operations and the mergers and acquisitions process for its remaining business units. The company said the emergency operating funds would be used first for merchandise purchases and supplier payments.
MBK Partners said that, along with providing the joint guarantee, it would fulfill its responsibility for normalization. The company explained that, as a shareholder, it would provide the joint guarantee to maintain business activities and proceed with the rehabilitation process. MBK said the additional joint guarantee would supplement part of the operating-fund financing.
Officials said that Homeplus currently stands at a crossroads between rehabilitation proceedings and the possibility of liquidation. Reports said the decision could affect approximately 100,000related workers and partner companies. The company presented stabilizing operations, including employment and payments to partner companies, as its top priority.
Homeplus has been seeking loans worth 2,000million won from financial institutions including Meritz Financial. The company said that if the loan is secured, it will first use the funds for emergency operating expenses. MBK’s joint guarantee is one of the key measures disclosed during the loan adjustment process.
Partner companies and business counterparties are watching for possible changes in payment schedules and delivery timetables. Homeplus explained that it would maintain business continuity while simultaneously selling its remaining business units. The company said it would disclose additional financing efforts and developments in the legal proceedings.
Going forward, Homeplus plans to secure operating funds while proceeding with rehabilitation proceedings. The company promised to prioritize store operations and payments to partner companies once it secures the necessary funds. Relevant stakeholders are checking the progress of procedures by the court and creditors.