Homeplus says Seoul Bankruptcy Court approves DIP loan, eyes Aug. 13 reopening

Homeplus said Wednesday that the Seoul Bankruptcy Court had approved a debtor-in-possession loan, allowing 200 billion won ($140 million) in DIP financing to flow into the company that day.

On July 3, the Seoul Bankruptcy Court moved to terminate Homeplus's rehabilitation proceedings, citing insufficient operating funds to carry out the rehabilitation plan. In response, Homeplus signed a 200 billion won DIP loan agreement with Meritz Financial Group and filed an immediate appeal.

With operating funds now secured, the Seoul Bankruptcy Court reversed its earlier termination decision through reconsideration and extended the deadline for approving the rehabilitation plan to Sept. 4. The DIP loan was arranged as part of that process, with 200 billion won expected to be deposited into Homeplus's accounts Wednesday.

Homeplus said it plans to wrap up final negotiations with suppliers and delivery companies and resume operations at 67 stores currently under temporary closure. The company said it will conduct a soft opening Thursday, complete operational checks and improvements through Tuesday, and hold a formal reopening on Aug. 13.