Homeplus filed an immediate appeal to the Seoul Rehabilitation Court on the afternoon of July 20 after securing 2000 billion won in debtor-in-possession (DIP) financing. The retailer submitted board resolutions from three Meritz Financial Group entities — Meritz Securities, Meritz Fire & Marine Insurance, and Meritz Capital — along with a joint guarantee agreement from majority shareholder MBK Partners. The appeal follows the court's July 3 decision to halt Homeplus's rehabilitation procedure due to funding uncertainty, with the court leaving a 14-day window for appeal and possible reconsideration. Legal experts estimate the court review and procedure resumption will take an additional 1 to 2 weeks from the appeal filing date. Homeplus stores entered temporary closure on July 13 during the funding crisis.
Court to Review Homeplus Appeal and DIP Fund Approval
The first stage after the immediate appeal filing is the court's reconsideration review. Reconsideration is a legal mechanism allowing the original court to cancel or modify its prior decision if it finds the appeal grounds valid. When the court issued the rehabilitation halt on July 3, it explicitly stated that reconsideration would be possible if an immediate appeal was filed within 14 days. Since the core reason for the halt was funding uncertainty, and Homeplus has now presented documented proof of 2000 billion won in secured financing, the grounds for the halt have been effectively resolved. The court is expected to swiftly review the submitted documents and cancel the halt decision by its own authority.
Simultaneously with the appeal review, the court's formal approval of Meritz Financial's DIP fund disbursement is expected to occur this week. DIP financing requires court pre-approval because it involves a rehabilitation company taking on substantial new debt. Once the court approves the Meritz DIP execution, the 2000 billion won held in Meritz Financial's escrow account will be transferred to Homeplus's corporate account. After confirming the funds have been fully deposited, the court will officially cancel the rehabilitation halt and declare the procedure's resumption. The timing is estimated to fall between the third and fourth weeks of this month. Given that the remaining rehabilitation deadline is in September, the court is likely to make expedited decisions to enable business normalization.
Business Normalization Timeline Depends on Court Decision
The final stage is operational normalization using the injected 2000 billion won. Even after fund receipt, the large-format stores that entered temporary closure on July 13 cannot reopen immediately the next day. Homeplus must complete settlement negotiations with suppliers regarding unpaid goods during the closure period, reorganize logistics, and restock shelves. Considering the physical time required, actual business normalization is estimated to be possible from August. A Homeplus representative stated, "As soon as the court issues a rehabilitation extension and resumption decision, we will communicate closely with partners to establish a specific reopening schedule. We will prioritize the secured funds for operational normalization to restore trust."
FAQ
What did Homeplus submit to the court on July 20?
Homeplus submitted an immediate appeal to the Seoul Rehabilitation Court on the afternoon of July 20, including board resolutions from Meritz Securities, Meritz Fire & Marine Insurance, and Meritz Capital, along with a joint guarantee agreement from MBK Partners.
Why did the court halt Homeplus's rehabilitation procedure on July 3?
The court halted the rehabilitation procedure on July 3 due to funding uncertainty, but left a 14-day window for immediate appeal and possible reconsideration if Homeplus could resolve the financing issue.
When could Homeplus stores reopen for normal operations?
Homeplus stores, which entered temporary closure on July 13, are estimated to resume normal operations from August, after completing supplier settlements, logistics reorganization, and restocking processes following the court's rehabilitation resumption decision.
