[비즈한국] It is reported that the court has pointed out a lack of progress in Homeplus's corporate rehabilitation proceedings and has requested opinions on whether to terminate the rehabilitation process. Consequently, concerns are spreading in the market that Homeplus is effectively standing at a crossroads of liquidation. With a series of store closures and ongoing wage arrears, doubts are growing over the possibility of operational normalization, while the livelihood instability of suppliers, tenant businesses, and employees is emerging as a realistic problem.
Struggles to Secure 300 Billion Won in DIP Financing… Court Deems Execution Virtually Impossible
According to the investment banking (IB) industry on the 12th, the 4th Rehabilitation Division of the Seoul Bankruptcy Court sent official letters to key stakeholders, including Homeplus majority shareholder MBK Partners, the creditor group, and two major labor unions (the General Union and the Mart Union), requesting them to submit their opinions on the direction of the proceedings.
The court pointed out that discussions regarding the 300 billion won DIP (Debtor-in-Possession) emergency operating loan have made no progress. Previously, Homeplus proposed a plan where MBK Partners, Meritz Financial Group138040, and the Korea Development Bank would each contribute 100 billion won. However, funding has become difficult as Meritz Financial and the Korea Development Bank have failed to reach an agreement.
It is reported that the court judged the structural innovation-type rehabilitation plan submitted by Homeplus as effectively unfeasible and asked for opinions on whether to terminate the rehabilitation process. Furthermore, if there is a will to continue the process, the court requested concrete funding plans and the recommendation of a new third-party administrator.
This discussion is interpreted as a measure to gauge the sustainability of the process with the legal deadline for the rehabilitation schedule approaching. Under current law, a rehabilitation plan must be approved within one year from the start of the rehabilitation proceedings. For Homeplus, which began the process in March last year, the deadline for approval is this coming March. However, the court can extend the deadline by up to six months if necessary.
Amid growing uncertainty over whether to continue the process, a difference in stances among stakeholders is also being felt. MBK Partners is reported to have expressed its approval of the rehabilitation plan and a willingness to participate in DIP financing. It is known that while the creditor group has raised cautious views that funding conditions need further review, they have not openly expressed strong opposition. Among the Homeplus labor unions, the General Union has stated its conditional agreement.
On the other hand, the Mart Union stated that while it opposes the structural innovation-type rehabilitation plan, it also cannot accept the termination of the rehabilitation process. As they find the current restructuring method difficult to accept but do not want the company to collapse, they are calling for the preparation of a new rehabilitation plan.
The Mart Union stated, "We strongly demand an extension of the rehabilitation process. Funding must also be promoted based on MBK's responsible self-rescue efforts, and we have actively recommended to the court that UAMCO, which has a public nature, is a suitable new administrator."
Empty Shelves, Unpaid Wages… Growing Sense of Crisis over Homeplus Liquidation
In the market, the evaluation is that the Homeplus rehabilitation process has entered a critical juncture. As the court has raised questions about the feasibility of the rehabilitation plan and left open the possibility of terminating the proceedings, the sense of crisis is escalating. Observers in the industry suggest that if practical alternatives such as additional funding, asset sales, or attracting outside investment are not prepared, the possibility that the court could shift its direction toward liquidation or asset disposal-centered resolution procedures cannot be ruled out.
Homeplus's management situation has deteriorated rapidly due to a lack of operating funds. Following the suspension of operations at five stores at the end of last year, it announced the additional closure of 12 stores this year. Payment delays for supplies have led to empty shelves, and there are setbacks in paying employee wages. Only part of January's salary was paid, and it has been announced that normal payment for February is also difficult.
If Homeplus fails to pass through the rehabilitation process and enters the liquidation phase, the social impact is expected to be significant. Including employees at the headquarters, nationwide stores, and logistics centers, as well as dispatched and contract workers from suppliers, the number of people whose livelihoods would be affected could reach tens of thousands, and there is a high possibility that damages will spread to suppliers and business partners overall.
However, liquidation does not mean an immediate halt to operations. Typically, asset sales and store disposals proceed in stages, and there is a possibility that some stores could be maintained through investor acquisition or lease operations.
Lee Jong-woo, a professor of business administration at Ajou University, pointed out, "I have doubts as to whether MBK Partners is keeping a scenario in mind where they wait for the court's liquidation decision and sell off stores sequentially," adding, "It is unfortunate that there were no measures to help alleviate employment insecurity, which could have been helped if the government had pressured them to maintain the number of stores."