Korean OTT platform Watcha faces a May 16 deadline for submitting its rehabilitation plan to Seoul Bankruptcy Court after a failed public sale, while retailer Homeplus approaches a May 20 re-appeal deadline following the court's rehabilitation termination decision. Watcha's public sale collapsed in April when CJ ENM, the most likely acquirer, did not participate in final bidding, prompting the company to switch to private negotiations and extend its submission deadline six times since January. Homeplus entered rehabilitation proceedings in March of last year, and stakeholders MBK Partners and Meritz Financial Group remain in disagreement over DIP (emergency operating funds) terms as the re-appeal window closes. Separately, Hong Kong-based PE firm Anchor Equity Partners is conducting preliminary bidding for smart farm company Doctor Egg until May 15, targeting a transaction price of approximately 300 billion won.
Watcha Faces May 16 Rehabilitation Plan Deadline After Failed CJ ENM Sale
Watcha recently applied to Seoul Bankruptcy Court for an extension of its rehabilitation plan submission deadline, receiving a new deadline of May 16. The extension follows the failure of Watcha's public sale process. In April, Watcha received acquisition interest from domestic and international media-related companies including CJ ENM and proceeded with a public sale. However, the sale was canceled when CJ ENM, identified as the most likely acquirer, did not participate in the final bidding.
Following the failed public sale, Watcha changed its sale method to private contract and has continued working to find a buyer through non-public channels. The court extended the rehabilitation plan approval deadline once in consideration of this progress. Watcha has extended the submission deadline a total of six times from January to this month. If Watcha fails to find a suitable acquirer, the court may decide on rehabilitation termination on May 16.
Anchor Equity Partners Conducts Doctor Egg Preliminary Bidding Until May 15
Hong Kong-based PE firm Anchor Equity Partners is proceeding with the sale of Doctor Egg, a smart farm-based mushroom cultivation company. Preliminary bidding is scheduled to be conducted until May 15, with the target transaction price known to be approximately 300 billion won. Anchor PE has been pursuing the sale of Doctor Egg since 2019.
Homeplus Stakeholders Negotiate DIP Terms Before May 20 Re-Appeal Deadline
Homeplus is expected to spend its most critical week since the commencement of rehabilitation proceedings in March of last year. Seoul Bankruptcy Court decided on Homeplus' rehabilitation termination and set the re-appeal period until May 20. Considering next week's Constitution Day holiday and weekend schedule, MBK Partners and Meritz Financial Group, the parties involved in DIP (emergency operating funds) support, do not have much time available for negotiations.
The previous day, the ruling Democratic Party held consecutive meetings attended by MBK, Meritz, and the National Pension Service, pressuring the parties to reach an agreement. The National Pension Service took a strong position, stating it could recover 1.2 trillion won invested in MBK according to the final resolution of the Financial Services Commission's sanctions review. However, the meeting only confirmed the gap between the two sides' positions, as MBK proposed a 200 billion won DIP loan on the condition of Chairman Kim Byung-joo's personal guarantee, while Meritz stated that store sale proceeds cannot be used for DIP.
FAQ
What is Watcha's deadline for submitting its rehabilitation plan?
Watcha received a deadline extension to May 16 for submitting its rehabilitation plan to Seoul Bankruptcy Court. The company has extended this deadline six times since January following the failure of its public sale process in April.
When is Homeplus' re-appeal deadline and what is being negotiated?
Homeplus faces a May 20 re-appeal deadline following Seoul Bankruptcy Court's rehabilitation termination decision. MBK Partners and Meritz Financial Group are negotiating DIP (emergency operating funds) terms, with MBK proposing a 200 billion won loan contingent on Chairman Kim Byung-joo's personal guarantee, while Meritz maintains that store sale proceeds cannot be used for DIP.
