'Rehabilitation less likely if only 100 billion won provided'

A notice of business suspension posted at the Homeplus Jamsil branch in Songpa-gu, Seoul [Herald DB]
A notice of business suspension posted at the Homeplus Jamsil branch in Songpa-gu, Seoul [Herald DB]

Homeplus on Friday asked Meritz Financial Group to provide 200 billion won ($144 million) in emergency funds, after Meritz indicated it could lend up to 100 billion won to help the retailer complete its court rehabilitation process.

"The emergency operating funds needed to rehabilitate Homeplus and normalize its operations amount to 200 billion won," the company said, appealing to Meritz to "take on an additional 100 billion won for Homeplus's recovery."

Meritz said Thursday it was willing to lend within the 100 billion won range that MBK Partners, Homeplus's majority shareholder, had pledged as an additional joint-and-several guarantee. Homeplus, however, said that if only 100 billion won is provided, it would be unable to complete the ongoing store closure process or resume product supply.

"The conditions necessary for a successful rehabilitation are already largely in place," Homeplus said. "The remaining task at this point is securing 200 billion won in emergency operating funds that will allow Homeplus to survive."

The company added that the rehabilitation deadline is July 3, and that even if extended, the process must be successfully concluded before Sept. 3. "We again earnestly ask that you make a decisive move to help us clear this final hurdle in the rehabilitation," it said.


spa@heraldcorp.com