Seoul Rehabilitation Court's Rehabilitation Division 4 (Presiding Judge Jeong Jun-young) cancelled Homeplus' rehabilitation procedure on the 3rd due to failure to secure minimum operating funds of 2 trillion won required for rehabilitation plan implementation. The decision raises bankruptcy concerns for the retailer employing approximately 12,000 workers. The labor union demanded government emergency support including public funds injection, urging rehabilitation measures.
Court Cites Funding Failure and Revenue Decline
The court stated that while Homeplus Express business division sale was completed, M&A for remaining business divisions was not achieved. During continued operations, sales decreased while public interest claims including wages, product payment debts, and taxes surged. The court noted that minimum operating funds of approximately 2 trillion won are necessary to operate the company and execute the rehabilitation plan, but funding has not been secured to date. The court concluded that the rehabilitation plan including amendments lacks feasibility, deciding to cancel the rehabilitation procedure without submitting it to creditors' meeting deliberation and resolution.
Appeal Window Remains Open for 14 Days
Homeplus liquidation possibility increased with the rehabilitation procedure cancellation, but revival possibility has not completely disappeared. Homeplus can file an immediate appeal within 14 days against the cancellation decision. If operating funds are secured within this period and rehabilitation plan feasibility is demonstrated, the court can cancel its own cancellation decision through a reconsideration procedure. The court explained that through reconsideration, Seoul Rehabilitation Court can cancel the cancellation decision itself and designate a creditors' meeting date for rehabilitation plan deliberation and resolution.
Union Demands Public Funds and MBK Accountability
The Mart Industry Labor Union issued a statement immediately after the court decision, demanding that all possible emergency measures including public funds injection be implemented within 14 days to prepare Homeplus rehabilitation measures. The union also demanded thorough investigation and accountability determination for major shareholder MBK Partners, and preparation of recurrence prevention measures. In financial circles, as Financial Supervisory Service reportedly maintained the original proposal for heavy disciplinary action including job suspension against MBK Partners, the accountability dispute surrounding the Homeplus situation is expected to intensify.
FAQ
What did Seoul Rehabilitation Court decide about Homeplus on the 3rd?
Seoul Rehabilitation Court's Rehabilitation Division 4 cancelled Homeplus' rehabilitation procedure on the 3rd because the company failed to secure minimum operating funds of 2 trillion won required for rehabilitation plan implementation.
How many days does Homeplus have to appeal the cancellation decision?
Homeplus can file an immediate appeal within 14 days against the rehabilitation procedure cancellation decision. If operating funds are secured within this period and rehabilitation plan feasibility is demonstrated, the court can cancel its own cancellation decision through reconsideration.
