MBK Partners, the majority shareholder of Homeplus, and Meritz Financial Group, its largest creditor, have reached a tentative agreement on the minimum emergency funding needed to keep the retailer's rehabilitation proceedings alive, sources said Wednesday.
According to Yonhap and political sources, the two sides agreed in principle that Meritz Financial Group will provide debtor-in-possession financing if MBK Partners Chairman Kim Byung-ju personally guarantees the 200 billion won ($134 million) loan.
If Meritz's board approves the plan at its meeting Thursday, Homeplus could file an immediate appeal to overturn the court's earlier decision to terminate its rehabilitation proceedings.
That would open the door for Homeplus to resume the rehabilitation process. The deadline to file an immediate appeal against the termination ruling is Monday, July 20.
The two sides narrowed their differences under pressure from the Democratic Party of Korea, including its Euljiro Committee. The Democratic Party has scheduled a National Assembly Financial Services Committee hearing on the Homeplus situation for July 27, and the party's Euljiro Committee summoned MBK Partners and Meritz Financial Group on Thursday, July 9, to demand they secure emergency operating funds and draw up a rehabilitation plan.
eyre@heraldcorp.com
