'Final consent rate will rise further by Wednesday,' company says

Homeplus headquarters in Gangseo-gu, Seoul. [Herald DB]
Homeplus headquarters in Gangseo-gu, Seoul. [Herald DB]

Homeplus said Wednesday that 64.4% of its public creditors had agreed to installment repayment as of Tuesday.

Among public creditors, 66.2% of those owed unpaid goods payments have consented to the arrangement, while 88% of current and former employees yet to receive wages or severance pay have agreed.

"Consent rates rose sharply as government agencies joined the installment repayment agreement," Homeplus said. "When additional consents received before the creditors' meeting are counted, the final rate will be even higher."

The creditors' meeting to review and vote on Homeplus's rehabilitation plan is scheduled for 3 p.m. Wednesday at the Seoul Bankruptcy Court. The court will ask secured rehabilitation creditors, unsecured rehabilitation creditors and shareholders whether they approve the plan. Passage requires the consent of at least 75% of secured rehabilitation creditors, at least 66.7% of unsecured rehabilitation creditors and at least 50% of shareholders.

If public creditors — who hold priority repayment rights — demand immediate repayment, Homeplus's rehabilitation efforts could face significant disruption. For that reason, the Seoul Bankruptcy Court asked Homeplus to secure public creditors' agreement to installment repayment.


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