Homeplus Additional Repayment of 112.7 Billion Won in Rehabilitation Bonds... Executive in Charge of Restructuring Also Appointed

Bankruptcy Court Grants Second Approval for Early Repayment of Rehabilitation Claims Following the Decision on the 7th
Early Repayment Targets Unpaid Settlement Payments for January and February to In-Store Tenants
Kim Changyoung, Former Executive Director at Meritz Capital, Appointed as CRO

On the 11th, the Seoul Bankruptcy Court approved the early repayment of approximately 112.7 billion KRW in unpaid settlement payments for January and February of this year to tenants operating stores within Homeplus locations. This is the second approval for early repayment of rehabilitation claims, following Homeplus, the debtor, filing a request for approval of early repayment of rehabilitation claims with the court on the 10th.

The Seoul Bankruptcy Court’s Rehabilitation Division 4 (Chief Judge Jeong Jun-young) stated, "Regarding the debtor company's application for approval of early repayment of rehabilitation claims, the settlement payment is intended to prioritize protection for partner companies (trade creditors) and to maintain essential existing business relationships for the debtor’s continuous and normal operations," adding, "The necessity was recognized, and approval was granted for the entire requested amount."

Additionally, the Bankruptcy Court announced that it appointed a Chief Restructuring Officer (CRO) for the Homeplus case on the same day. The CRO position was assigned to Mr. Kim Chang-young, a former executive director at Meritz Capital. The term of office is from the court’s approval date until the conclusion or dismissal of the rehabilitation proceedings. This decision was made based on the judgment that appointing a CRO recommended by the creditors’ committee and supervised by the committee is necessary to effectively oversee the existing management, promote corporate rehabilitation, and enhance the fairness and transparency of the rehabilitation process.

The CRO is responsible for the preliminary review and advice on various approval applications, creditor lists, schedules of claims, and rehabilitation plans submitted by the debtor company’s legal administrator to the Bankruptcy Court in relation to the rehabilitation proceedings. The CRO also monitors the debtor company’s cash flow situation and reports it to the Bankruptcy Court and the creditors’ committee. Furthermore, the CRO reviews other matters requested by the debtor company’s legal administrator for court approval.

The Bankruptcy Court explained, "The CRO will supervise and provide advice to the existing management and act as a bridge among the debtor, the creditors’ committee, and the court." Previously, on the 4th, the Bankruptcy Court initiated corporate rehabilitation proceedings for Homeplus to facilitate proactive restructuring.