The entrance to Homeplus' headquarters in Seoul remains closed, Monday, as the cash-strapped retailer faces the deadline to appeal the Seoul Bankruptcy Court's decision to terminate its rehabilitation proceedings.
Yonhap Homeplus, once Korea’s second-largest discount store chain, formally appealed a court decision to terminate its rehabilitation proceedings, Monday, after securing a 200 billion won ($135 million) emergency loan.
Although the last-minute financing may have pulled the company back from the brink of liquidation, its return to normal business remains far from assured.
To stay afloat, Homeplus must rebuild supplier confidence, secure fresh liquidity and win back customers after months of disruption.
The appeal follows Meritz Financial Group’s approval of the financing on July 16, 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 (DIP) loan.
