Homeplus rehabilitation proceedings abolished, securing funding within 2 weeks is the key

As the Seoul Bankruptcy Court on the 3rd decided to abolish Homeplus's rehabilitation proceedings, the company is increasingly likely to move toward liquidation. The court said that at least 200 billion won in operating funds are needed to implement the rehabilitation plan, but that the funds have not yet been secured. The court explained that if Homeplus raises the funds and files an immediate appeal within 14 days, the decision to abolish the proceedings can be revoked. Accordingly, the financial responsibility dispute between major shareholder MBK Partners and the creditors' group Meritz Financial Group has emerged as a key variable over the next two weeks. Homeplus has continued rehabilitation proceedings since last year and pushed forward merger and acquisition and restructuring plans, but failed to secure external funding. The labor union, partner companies, and tenant merchants are calling for intervention from the government and politicians, while the government has introduced measures to expand advance wage payments for victims of unpaid wages and support for partner small business owners. If Homeplus goes bankrupt, significant damage is expected for multiple stakeholders, including workers, suppliers, and tenant businesses.