A Homeplus store in Seoul. [Herald DB]
A Homeplus store in Seoul. [Herald DB]

Homeplus, which had been heading toward bankruptcy, has kept its restructuring hopes alive after securing 200 billion won ($134 million) in emergency funds — the minimum required to proceed with rehabilitation. However, the road to full operational recovery or a merger and acquisition remains long.

Industry sources said Monday that Homeplus plans to file an immediate appeal against a court ruling to terminate its rehabilitation proceedings. If the court accepts the appeal, it could overturn the termination decision and extend the restructuring period through Sept. 4. The hypermarket chain, which has suspended operations, said it would draw up a schedule to reopen stores after consulting with suppliers once a court decision to extend the proceedings is issued.

Meritz Financial Group, the largest creditor, had insisted that MBK Partners — Homeplus's largest shareholder — provide the remaining 100 billion won, noting that it had already deposited 100 billion won in debtor-in-possession financing into escrow. MBK had held firm that additional capital injection was not feasible, leaving the two sides at an impasse. The deadlock broke when Meritz agreed to provide the full 200 billion won in DIP financing on the condition that MBK Partners Chairman Kim Byung-ju personally guarantee the entire amount.

The 200 billion won in emergency operating funds represents the bare minimum needed to proceed with rehabilitation. Whether Homeplus can restore normal operations remains uncertain. The company currently carries about 930 billion won in public-interest claims, a large portion of which stems from supplier payments that arose after the rehabilitation proceedings began. If a significant share of the 200 billion won goes toward settling those claims, analysts say the company's financial position will be difficult to improve.

Homeplus plans to use the 200 billion won to reopen stores and return its core locations to profitability. MBK also intends to normalize Homeplus's operations and pursue an acquisition of remaining business units, including the hypermarket segment. However, given that previous sale attempts fell through amid a difficult retail environment, the outlook remains uncertain. There is also a possibility the court will reject the immediate appeal, in which case Homeplus is expected to enter bankruptcy proceedings immediately..


korean@heraldcorp.com