Court Extends Homeplus Rehabilitation Proceedings Until Sept. 4

According to Yonhap, the Seoul Bankruptcy Court canceled its earlier decision to end Homeplus Co.'s rehabilitation proceedings and extended the process until Sept. 4 after the discount chain filed an appeal. The court had planned to terminate the case on July 3 after Homeplus failed to secure at least 200 billion won ($134 million) needed for restructuring. The appeal followed an agreement last week by Homeplus' largest creditor, Meritz Financial Group, to provide financing in exchange for a full payment guarantee from MBK Partners, the retailer's sole owner. The court said the original termination order was based on a lack of funds to carry out the rehabilitation plan, but the immediate appeal was accepted after operating capital was secured. Homeplus temporarily closed its stores starting July 13 because of a shortage of operating cash and difficulties maintaining operations. MBK Partners bought a 100% stake in Homeplus in 2015 from Tesco Plc for 7.2 trillion won.