Homeplus' main creditor decided Thursday to extend fresh funding of 200 billion won to the cash-strapped retailer that temporarily closed some outlets due to a lack of operating capital.
Meritz Financial Group agreed to extend the funding in exchange for a full guarantee by private equity fund MBK Partners, which wholly owns the retailer.
The Seoul Bankruptcy Court earlier this month decided to terminate rehabilitation proceedings for Homeplus. The court rejected the company's revised plan, citing its failure to secure at least 200 billion won needed to carry it out.
Homeplus said it will appeal the court's decision on Monday. "The labor unions, MBK Partners and Meritz have agreed to continue the rehabilitation process based on mutual cooperation and concessions," the company said in a statement. The closed stores are expected to resume operations if the court accepts the appeal.
