Court Approves 60 Billion KRW Loan for Homeplus

Homeplus will receive a loan of 60 billion KRW from Curious Plus, a private equity fund (PEF) manager specializing in corporate restructuring.

The 4th Division of the Seoul Bankruptcy Court (Chief Judge Jung Junyoung, Presiding Judge Park Soyoung) approved on April 23 the DIP (Debtor-In-Possession) financing requested by Homeplus, which is currently undergoing corporate rehabilitation proceedings. On April 11, Homeplus applied for approval to borrow 60 billion KRW from Curious Plus to secure funds for payments to small business suppliers. The interest rate is 10% per annum, with a maturity of three years.

DIP financing refers to new funding obtained during corporate rehabilitation proceedings. It incentivizes capital providers by granting priority in repayment order, thereby helping companies secure operating funds and successfully complete court receivership.

The bankruptcy court explained the approval by stating, "The claims to be paid by Homeplus with the raised funds are public interest claims, including trade claims such as accounts payable for goods and sales settlement claims. Therefore, DIP financing does not substitute rehabilitation claims with public interest claims, nor does it alter Homeplus's ability to repay its rehabilitation creditors." For this DIP financing, Kim Byungju, Chairman of MBK Partners, and Kim Kwangil, Vice Chairman of MBK and Co-CEO of Homeplus, will provide joint guarantees.