Meritz Financial Group is set to hold a board meeting on the morning of the 16th to discuss providing an additional 1000 billion won in emergency operating funds to Homeplus, bringing total support to 2000 billion won, with major shareholder MBK Partners reportedly agreeing to guarantee the full amount. The funding negotiation breakthrough comes as Homeplus faces bankruptcy crisis and requires 2000 billion won in debtor-in-possession (DIP) financing to continue operations. The Democratic Party scheduled a hearing targeting MBK and Meritz for the 27th, while the Homeplus labor union transmitted cost reduction proposals to political circles, creating momentum for the previously deadlocked negotiations.
Meritz Board Meeting Scheduled for Additional Funding Discussion
According to industry sources on the 15th, Meritz Financial will hold a board meeting on the morning of the 16th to discuss an additional 1000 billion won in emergency operating funds for Homeplus. If the agenda passes at the board meeting, total emergency rehabilitation funds provided by Meritz to Homeplus will increase to 2000 billion won. MBK is reported to have decided to provide guarantees for the full 2000 billion won that Meritz will support.
The two sides had previously shown disagreement over loan scale and guarantee scope. Meritz's position was to provide only 1000 billion won on the condition of guarantees from MBK Partners and Chairman Kim Byung-joo, with MBK needing to directly arrange the remaining 1000 billion won. In contrast, MBK demanded that Meritz loan the full 2000 billion won needed by Homeplus while offering to provide guarantees for only 1000 billion won of that amount.
Democratic Party Schedules Hearing for 27th
The Democratic Party decided to pursue a 'Homeplus situation hearing' targeting MBK and Meritz on the 27th. The Democratic Party plans to vote on the hearing schedule and witness adoption agenda at the National Assembly Policy Committee plenary session on the 16th. The political sector's use of the hearing card appears to have created room for movement in the previously parallel negotiations.
Union Transmits Cost Reduction Proposal
The labor union also transmitted a plan to the political sector to partially reduce cost burden on the premise of Meritz's 2000 billion won support. Lee Jong-seong, chairman of the Homeplus General Labor Union, stated at a rally held in front of Meritz Financial headquarters in Seoul that afternoon that the Democratic Party is considering a plan to propose a 2000 billion won scale DIP loan to Meritz at the hearing while presenting the union's concession plan together.
The union's plan included not applying special retirement compensation to employees of 37 closed stores and instead making full relocation the principle. It also included reducing relocation consolation money from 3 million won to 1.5 million won and paying only half of the September bonus.
Lee Jong-seong, the union chairman, stated: "If 2000 billion won in DIP support actually happens, we transmitted our position that we can seek consent from union members and consider a plan to concede to a certain extent." The union's proposal to reduce additional costs from workforce restructuring may have also influenced the funding support negotiations between Meritz and MBK.
Homeplus Secures Basis for Immediate Appeal
If the Meritz board approves the additional loan and MBK's full guarantee is confirmed, Homeplus will secure the funding basis to immediately appeal the decision to abolish rehabilitation proceedings. If the court accepts this, the possibility opens for overcoming the bankruptcy crisis and continuing rehabilitation proceedings again.
FAQ
What funding amount is Meritz discussing for Homeplus on the 16th?
Meritz Financial Group scheduled a board meeting on the morning of the 16th to discuss providing an additional 1000 billion won in emergency operating funds to Homeplus. Combined with the previously announced 1000 billion won, total support would reach 2000 billion won, with MBK Partners reportedly agreeing to guarantee the full amount.
What concessions did the Homeplus labor union propose?
The union transmitted a proposal including not applying special retirement compensation to employees of 37 closed stores and making full relocation the principle instead, reducing relocation consolation money from 3 million won to 1.5 million won, and paying only half of the September bonus. These concessions are premised on Meritz providing the full 2000 billion won in support.
When is the National Assembly hearing on the Homeplus situation scheduled?
The Democratic Party scheduled a hearing targeting MBK and Meritz for the 27th. The party plans to vote on the hearing schedule and witness adoption agenda at the National Assembly Policy Committee plenary session on the 16th.
