Homeplus' Jamsil branch in Seoul's Songpa District remains closed, June 5, amid the retailer's court-led rehabilitation process.
Yonhap Meritz Financial Group has approved 100 billion won ($66 million) in emergency financing for Homeplus, the struggling retailer currently undergoing court-led rehabilitation, the company said Thursday.
The approval, however, falls short of the 200 billion won sought by Homeplus.
Meritz also stipulated that the funds can only be drawn if MBK Partners, the private equity firm that controls the retailer, and MBK Chairman Michael ByungJu Kim provide legally valid and enforceable joint guarantees, casting doubt on whether the financing will ultimately be disbursed.
The conditions have heightened concerns over Homeplus' restructuring prospects, with industry observers warning that the retailer could face bankruptcy if it fails to secure sufficient funding before a key court deadline in July.
