Homeplus Main Creditor Extends 200 Bln Won in Fresh Funding

According to Yonhap, Homeplus Co.'s main creditor agreed to extend 200 billion won ($134 million) in new funding to the cash-strapped discount store chain after some outlets were temporarily closed this week because of a lack of operating capital. Meritz Financial Group will provide the money in exchange for a full guarantee from private equity owner MBK Partners, while the Seoul Bankruptcy Court has rejected Homeplus' revised rehabilitation plan for failing to secure at least 200 billion won needed to carry it out. Homeplus said it will appeal the court's decision to terminate its rehabilitation proceedings on Monday and added that it expects temporarily closed large-format stores to reopen if the appeal is accepted and the process is extended.