As Kim Byung-joo, chairman of MBK Partners, pledged to contribute his personal funds to take partial responsibility for the poor management in order to normalize Homeplus, industry attention is focused on the scale of his contribution. Although Homeplus's financial debt of over 2 trillion won has been frozen due to the commencement of corporate rehabilitation proceedings (court receivership), it is forecasted that at least more than 1 trillion won in funds will be needed for normal operations to resume.
On the 16th, MBK stated in a press release, "We will fulfill our social responsibility related to the rehabilitation of Homeplus," and added, "As part of this, Chairman Kim will prepare financial support to promptly pay settlement payments to small business suppliers who are expected to face difficulties." However, the specific scale of the personal fund contribution was not disclosed.
Since the commencement of rehabilitation on the 4th, Homeplus has been making normal payments for trade receivables such as delivery payments. For overdue trade receivables incurred from December last year through January and February this year, payments are being made first to small and micro businesses. Homeplus stated that an accurate calculation is needed to determine the exact amount of overdue payments to small and micro businesses.
The industry believes that more than 1 trillion won in funds is necessary to prevent Homeplus's operations from being halted. The scale of trade receivables that Homeplus must settle monthly is around 500 billion won.
At a press conference on the 14th, Homeplus management said, "Cash is coming in daily," but liquidity shortages can occur at any time. They are simultaneously executing funds for trade receivables incurred from December last year through February this year, 'public interest claims' incurred within 20 days before the commencement of rehabilitation, and trade receivables incurred after the commencement of rehabilitation.
It is known that from December last year through February this year, the Seoul Rehabilitation Court approved the execution of funds amounting to 345.7 billion won for goods and service payments and 112.7 billion won for settlement payments to leased store owners in January and February this year, totaling 458.4 billion won.
The Homeplus Mart Labor Union pointed out that "the cause of the management deterioration is MBK's lack of investment and absence of strategy," citing that MBK's acquisition of Homeplus through a leveraged buyout (LBO), repaying debts and interest while managing with a focus on real estate, weakened competitiveness and caused the current crisis.
In its statement on the same day, MBK emphasized, "We will ensure that smooth negotiations can be held between all creditors, including those related to accounts receivable securitization, and Homeplus."
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