Homeplus: "Vice Chairman Kim Kwangil Offers Performance Guarantee" Meritz: "MBK Irresponsible, Unacceptable"

On May 21, Homeplus made a renewed request to Meritz Financial Group for a bridge loan, offering a performance guarantee from Vice Chairman Kim Kwangil of MBK Partners. Meritz Financial responded by stating, "Major shareholder MBK and Chairman Kim Byungjoo have made it clear that they intend to bear no responsibility," and criticized the proposal as "irresponsible and unacceptable."

In a press release issued that day, Homeplus stated, "As the proceeds from the sale of Homeplus Express are expected to be received by the end of June, we have again asked Meritz Financial to provide a bridge loan to cover operating funds needed for about a month, using the sale proceeds as collateral." The company added, "In this regard, Vice Chairman Kim Kwangil, the administrator of Homeplus, has agreed to offer a performance guarantee, and additional collateral measures have also been provided."

Yonhap News

Previously, Meritz Financial had set out the following conditions for the bridge loan requested by Homeplus: immediate early repayment upon receipt of the Homeplus Express sale proceeds; joint guarantees by the major shareholder MBK Partners and individual members of management; and an interest rate similar to that of the existing DIP loan. Homeplus agreed to immediately repay the bridge loan upon receipt of the sale proceeds, but was reluctant to have MBK Partners, the main shareholder, provide a performance guarantee.

As the discussions reached an impasse, Homeplus countered with an alternative proposal, offering a joint guarantee from Vice Chairman Kim in his capacity as administrator. Homeplus stated, "Since we have proposed every possible measure currently available, we hope Meritz will review the proposal positively and act without delay."

However, Meritz Financial maintains that it is difficult to accept the alternative proposed by MBK. Meritz Financial holds that a performance guarantee is necessary to eliminate the risk of breach of trust and to convince shareholders. The company added, "MBK, as the major shareholder, and Chairman Kim Byungjoo are refusing to assume any responsibility," and described the proposal as "irresponsible and unacceptable."

Meritz Financial further stated, "Despite being entirely responsible for Homeplus's deteriorating management, MBK continues to shift the responsibility and burden onto creditors," adding, "This behavior not only worsens the Homeplus situation but also seriously undermines market order."

In response, Homeplus issued another statement, saying, "The business transfer of Homeplus Express is a procedure carried out by the administrator of Homeplus under court approval, leaving no room for control by major shareholder MBK Partners," and added, "Vice Chairman Kim has even agreed to personally assume the guarantee responsibility."

Homeplus continued, "In such a dire situation, please do not undermine the efforts of Homeplus and its administrator," and asserted, "We believe that helping to ensure the rehabilitation and normalization of Homeplus does not constitute a breach of trust for Meritz."

This content was produced with the assistance of AI translation services.