SEOUL, July 20 (Yonhap) – Homeplus Co. on Monday filed an appeal against a Seoul court’s decision to end its corporate rehabilitation proceedings, seeking to resume the controlled restructuring process.
The financially troubled discount chain filed an immediate appeal with the Seoul Bankruptcy Court on Monday afternoon, the company said in a press release.
On July 3, the court stopped Homeplus’s rehabilitation proceedings, finding that the company had failed to raise the minimum 200 billion won ($134 million) needed to continue the restructuring process.
The company has temporarily closed its stores since July 13 due to a lack of working capital and difficulties in maintaining store operations.
The appeal comes after Meritz Financial Group, Homeplus’s largest lender, agreed Thursday to provide financing in exchange for a full payment guarantee from private equity firm MBK Partners, the retailer’s sole owner.
MBK Partners acquired a 100 percent stake in Homeplus in 2015 from British retailer Tesco Plc for 7.2 trillion won.
Homeplus Store (Yonhap)
kyongae.choi@yna.co.kr
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