Homeplus Appeals Court Decision to End Rehabilitation Proceedings

Homeplus has officially appealed the Seoul Rehabilitation Court's decision to terminate its rehabilitation proceedings. The retail giant stated it filed an immediate appeal, expressing confidence that the court will reconsider its decision and extend the proceedings. This move comes after Homeplus secured the necessary operating funds, amounting to 200 billion won. The company believes this financial backing fulfills the conditions for a change in circumstances, allowing the court to potentially revoke its earlier termination ruling.

The crucial funding was made possible by Kim Byung-ju, chairman of Homeplus's shareholder MBK Partners, who provided a joint guarantee for the entire 200 billion won. Additionally, Meritz Financial committed to providing a DIP (Debtor in Possession) loan of the same amount to Homeplus on July 17. DIP financing is a type of loan provided to companies undergoing rehabilitation proceedings to ensure they have sufficient capital to continue operations.

Previously, on July 3, the Seoul Rehabilitation Court had decided to terminate Homeplus's rehabilitation process, citing a lack of operating funds. However, the court had left open the possibility of reconsidering this decision if Homeplus could present a viable plan to secure the required funds. With the financial backing now in place, Homeplus is pushing for the court to reinstate its rehabilitation proceedings, aiming to normalize its business operations.

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We have filed an immediate appeal.