Homeplus creditor meeting set for Wednesday as unpaid supplier bills loom large

Homeplus's 503 billion won ($365 million) in unpaid supplier bills has emerged as a key variable in the court's review of the retailer's rehabilitation plan.

According to industry sources, the Seoul Bankruptcy Court will hold a creditors' meeting Wednesday at 3 p.m. to vote on the plan. At the meeting, the court will examine the rate at which public-interest creditors — including suppliers and employees — have agreed to installment repayment.

The unpaid supplier bills, classified as trade claims, are public-interest debts that Homeplus must repay regardless of the rehabilitation proceedings. Suppliers do not hold voting rights at the creditors' meeting. However, because public-interest claims take priority over ordinary rehabilitation claims, any demand for immediate repayment from public-interest creditors could make it difficult for Homeplus to return to normal operations.

The Seoul Bankruptcy Court had asked Homeplus to secure consent from about 80 percent of public-interest creditors for installment repayment by Monday. Total unpaid supplier bills stand at 503.2 billion won. As of Friday, 62.4 percent of product suppliers and 87.2 percent of employees had agreed to the installment plan. Homeplus has proposed repaying all public-interest claims in full within three years.

Sales trends since Homeplus resumed operations are also expected to influence the creditors' meeting. The company recorded total sales of 116.4 billion won from Sept. 13 to Sept. 30, when it reopened all 67 of its stores nationwide — a 57 percent increase from the same period the previous month.

At the creditors' meeting, stakeholders including creditors, secured creditors and shareholders will review the rehabilitation plan and declare whether they support it. Approval requires consent from at least 75 percent of secured rehabilitation creditors, at least 66.7 percent of unsecured rehabilitation creditors, and at least 50 percent of shareholders. If the plan passes, the court is likely to approve it Friday.

If the plan is rejected, the rehabilitation proceedings will likely be terminated, in which case Homeplus would proceed toward bankruptcy.