Homeplus’ rehabilitation faces difficulties as it wrestles over billions of won in operating funds
Ahead of the deadline for approval of its rehabilitation plan, Homeplus presented an amended proposal that includes store sales and a restructuring plan. However, disagreements between majority shareholder MBK Partners and major creditor Meritz Financial Group over securing operating funds worth hundreds of billions of won have left the rehabilitation process effectively stalled.
Homeplus is undergoing corporate rehabilitation proceedings. The company shared an amended rehabilitation plan, including a store sale and restructuring plan, with the creditors’ council. The deadline for approval of the rehabilitation plan is 7.3.
The plan includes asset monetization through store sales and measures for repaying creditors. Industry observers point out that it would be difficult to complete the rehabilitation proceedings stably through asset sales alone. Business operations must continue while the rehabilitation proceedings are underway.
Operating funds are needed to purchase merchandise, run logistics operations, and make payments to partner companies. The article states that normalization would be difficult without securing operating funds worth hundreds of billions of won. Accordingly, additional financing remains a key variable.
Homeplus has requested debtor-in-possession financing, known as DIP financing, from Meritz Financial Group to secure operating funds. Discussions on additional funding have reportedly made no clear progress so far. With court approval, DIP financing is granted priority repayment rights over existing claims.
The investment banking industry said the focus of recent discussions has shifted from financing to the major shareholder’s sharing of responsibility. Meritz Financial Group is demanding that MBK Partners play a responsible role before providing additional funding. The rehabilitation process is being delayed as differences between MBK Partners and Meritz Financial Group continue.
At present, no specific financing agreement has been reached to implement the amended rehabilitation plan. The results of consultations with creditors and the court’s review remain pending. The key issues are consultations with creditors and whether additional funding can be secured before the voting deadline.
Sources: 뉴시스 경제
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