"No realistic or specific funding documentation has been submitted"
"Failure to respond by June 30 will be treated as no objection"
The Seoul Rehabilitation Court has sent an official notice to Homeplus creditors demanding that a plan to raise 200 billion won ($130 million) be submitted by June 30.
The court's Fourth Division, presided over by Chief Judge Jeong Jun-yeong, confirmed Monday that it had dispatched the notice. With the deadline for approving the rehabilitation plan set for July 3, the move amounts to a final ultimatum.
"Even with just 10 days remaining before the extended deadline for a vote on the rehabilitation plan, the administrator has still failed to submit realistic and specific documentation for a plan to raise an additional 200 billion won," the court said.
The court went on to say that the rehabilitation plan submitted on Dec. 29, 2025, was not feasible and asked for opinions on terminating the rehabilitation proceedings. It added that any party failing to submit a substantive response by the deadline would be treated as having raised no objection.
Corporate rehabilitation proceedings allow a court to oversee the restructuring of a company when its value as a going concern exceeds its liquidation value. If the proceedings are terminated because the rehabilitation plan cannot be carried out, the debtor company faces bankruptcy.
Homeplus earlier sold its supermarket unit, Homeplus Express, to NS Shopping. However, it has yet to secure the 200 billion won needed to cover wages, supplier payments and restructuring costs.
Homeplus has been seeking a 200 billion won debtor-in-possession loan from its largest creditor, Meritz Financial Group. Meritz has said it is willing to lend 100 billion won on the condition that MBK Partners Chairman Kim Byung-ju provides a personal guarantee, with MBK responsible for raising the remaining funds. The two sides have continued to clash without reaching an agreement.
notstrong@heraldcorp.com
