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Bankruptcy Court Extends Homeplus Rehabilitation Proceedings After Appeal

En resumen

A Seoul bankruptcy court extended Homeplus Co.'s rehabilitation proceedings until Sept.
4 after the troubled discount chain appealed an earlier termination decision.
The extension follows Meritz Financial Group's agreement to provide financing with a full payment guarantee from Homeplus's owner, MBK Partners.

Resumen generado por IA

Por qué importa

Homeplus Co., a discount chain, faced termination of its rehabilitation proceedings due to a lack of funds for restructuring, leading to temporary store closures.

Tamaño de fuente

SEOUL, July 21 (Yonhap) -- A bankruptcy court on Tuesday canceled an earlier decision to end Homeplus Co.'s rehabilitation proceedings, extending the process after the troubled discount chain lodged an appeal.

The Seoul Bankruptcy Court said it would extend the proceedings until Sept. 4 after Homeplus submitted the appeal Monday against the court decision to terminate the process on July 3.

The court had originally decided to scrap the proceedings after the retailer failed to secure at least 200 billion won (US$134 million) required for the restructuring.

The appeal came after the retailer's largest creditor, Meritz Financial Group, agreed last week to provide financing in exchange for a full payment guarantee from private equity firm MBK Partners, the retailer's sole owner.

"The original termination decision was based on a lack of feasibility to carry out the rehabilitation plan due to a shortage of funds, but as operating funds have been secured, the immediate appeal has been recognized," the court said.

The distressed retailer temporarily closed its outlets starting July 13 due to a lack of operating capital and difficulties in maintaining store operations.

MBK Partners acquired a 100 percent stake in Homeplus in 2015 from British retailer Tesco Plc for 7.2 trillion won.