Court Approves Homeplus's Early Repayment of 345.7 Billion KRW Rehabilitation Bonds: "Necessity Recognized"

The court has approved the early repayment application for rehabilitation claims filed by Homeplus, covering the entire requested amount of approximately 345.7 billion KRW.

On the 7th, the 4th Division of the Seoul Bankruptcy Court (Presiding Judge Jeong Jun-young, Chief Judge Park So-young) announced that it had granted approval for Homeplus's early repayment of rehabilitation claims.

The early repayment amount applied for by Homeplus on the 6th is approximately 345.7 billion KRW, which corresponds to the payment for goods and services (commercial claims) from December last year and January to February this year. Normally, once rehabilitation proceedings begin, voluntary repayment of claims is not allowed; however, the court has taken measures to allow Homeplus to prioritize repayment of commercial claims to ensure its normal business operations.

The court stated, "Considering the necessity to prioritize protection of partner companies (commercial creditors) and to maintain essential existing business relationships for the debtor’s continuous and normal operations, approval was granted for the entire requested amount."

Earlier, on the 4th, the Seoul Bankruptcy Court decided to commence rehabilitation proceedings for Homeplus, one of the top three large domestic supermarkets, for the purpose of "proactive restructuring." Proactive restructuring refers to a process aimed at improving financial structure and restoring financial soundness through rehabilitation proceedings when a company is not currently insolvent but faces the risk of insolvency or cash shortages within a few months if its financial structure does not improve.

Meanwhile, following the commencement of these rehabilitation proceedings, Homeplus must submit a list of creditors to the court by the 18th. The creditor registration period lasts until the 1st of next month, after which the investigation committee, Samil Accounting Corporation, must submit an investigation report by the 28th. The rehabilitation plan must be submitted by June 3rd.