South Korea bankruptcy court scraps Homeplus's corporate rehabilitation plan (updated)
UPDATE 2-South Korea bankruptcy court scraps Homeplus's corporate rehabilitation plan Adds Homeplus statement in paragraphs 3-4
SEOUL, July 3 (Reuters) - A South Korean court ruled on Friday to scrap corporate rehabilitation proceedings for ailing retailer Homeplus owned by private equity firm MBK Partners.
Homeplus has failed to raise about 200 billion won ($130 million) needed to execute the restructuring plan it had submitted at the end of 2025, the Seoul Bankruptcy Court said in its ruling, adding that its debt continues to mount due to a decline in sales.
In a statement, Homeplus apologised to customers, employees, tenants, suppliers and other stakeholders, and urged its largest creditor, Meritz Financial Group 138040.KS, to provide a 200 billion won operating loan.
The retailer said it would cooperate fully with legal proceedings while seeking to minimise losses for creditors, employees and other stakeholders.
The court said Homeplus has 14 days to appeal the ruling.
Homeplus has divested a division but has failed to find a buyer for the rest of the company.
($1 = 1,539.9000 won)
(Reporting by Jack Kim and Heekyong Yang; Editing by Jacqueline Wong and Edwina Gibbs)
((jack.kim@thomsonreuters.com; +822 6936 1455;))
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