Homeplus Urges Government Intervention After Meritz Refuses 200 Billion Won Loan

Homeplus and the Homeplus General Labor Union urged the government today (June 24) to "prevent bankruptcy" regarding the company's corporate rehabilitation plan.

In a joint statement issued today with the General Labor Union, Homeplus stated, "Since entering rehabilitation proceedings in March of last year, we have made self-rescue efforts such as downsizing stores and selling off our supermarket business division, but we are facing a severe liquidity crisis due to the depletion of operating funds."

They stated, "To avoid bankruptcy, we requested a 200 billion won emergency operating loan from our largest creditor, Meritz Financial Group, and our major shareholder, MBK Partners, agreed to provide a joint guarantee for 100 billion won," adding, "However, Meritz Financial Group is refusing to provide the support."

They claimed, "If the funds are not secured by the 30th of this month, it will be difficult to avoid bankruptcy," and asserted, "Meritz, which has secured 64 stores through real estate collateral trusts, would recover its loan principal and interest as the first priority through auctions in the event of bankruptcy, totaling over 1.8 trillion won."

They argued, "Meritz Financial Group stands to gain more from Homeplus's bankruptcy than from its recovery," adding, "Homeplus employees, suppliers, partner companies, tenants, and general creditors will suffer irreversible and massive damage."

They appealed, "We ask relevant government agencies to facilitate communication and provide support so that Meritz Financial Group can exercise social responsibility and the spirit of inclusive finance."

Homeplus has two labor unions: the Homeplus branch under the Mart Workers' Union and the General Labor Union.

The Mart Workers' Union Homeplus branch also urged, "If the state and the rehabilitation court do not fulfill their duties, it will only help speculative capital 'eat and run'," adding, "The presidential office must respond to the opinion letter (sent by the rehabilitation court)."

The Seoul Rehabilitation Court sent an official letter to the creditors and labor unions related to Homeplus yesterday, requesting that they prepare a "200 billion won funding plan" by the 30th of this month.

Previously, Homeplus successfully sold its supermarket division, Homeplus Express, to NS Shopping, but it is currently unable to implement its previously submitted rehabilitation plan without securing 200 billion won in funds needed for wages, product payments, and restructuring.

Homeplus is requesting a 200 billion won emergency operating loan from its largest creditor, Meritz Financial Group.
※ Please note: This article was translated by AI and may contain errors.