A Homeplus store in Paju, Gyeonggi Province, remains closed with its entrance blocked by rows of shopping carts on Tuesday after the cash-strapped retailer temporarily shuttered stores, saying it could no longer cover basic operating expenses.
Yonhap Homeplus, once Korea's second-largest discount store chain, secured a 200 billion won ($135 million) emergency loan, Thursday, giving itself a chance to revive its court-led rehabilitation after its largest creditor, Meritz Financial Group, approved the financing.
The decision came a day after private equity firm MBK Partners, Homeplus' owner, and its chairman, Michael ByungJu Kim, agreed to provide joint personal guarantees for the full amount of the debtor-in-possession loan.
The funding allows Homeplus to appeal the Seoul Bankruptcy Court's earlier decision to terminate its rehabilitation proceedings.
MBK Partners Chairman Michael ByungJu Kim / Newsis The court ended the restructuring process on July 3, ruling that the company had failed to secure the minimum 200 billion won needed to carry out its turnaround plan.
