MBK Criticizes Meritz for Focusing Solely on Collateral Recovery After Homeplus Bankruptcy

"An Additional 1.5 Trillion Won Recovered on Top of Principal and Interest in Case of Liquidation"

Requesting DIP Financing Support from Meritz

MBK Partners, the largest shareholder of Homeplus, has criticized Meritz Financial Group, claiming it is focused solely on maximizing its gains from a potential Homeplus bankruptcy.

In a statement released on June 18, MBK stated, "Homeplus is not collateral to be liquidated," and added, "With over 10,000 employees and countless partner and supplier companies relying on Homeplus for their livelihood, we earnestly request that Meritz Financial Group take a forward-looking approach and seriously consider Homeplus's urgent request for DIP financing."

MBK asserted that the core issue is whether Meritz, as a key creditor, will participate in helping Homeplus survive, or whether it intends to maximize only the recovery of collateral and excess profit on the premise of bankruptcy. MBK said, "We expect that Meritz Financial Group, as a major financial group that respects the social value of inclusive finance, will prioritize social co-prosperity through Homeplus's recovery rather than focusing solely on recovering its principal and interest."

MBK further claimed that the amount Meritz would recover through the liquidation of Homeplus would reach 1.8161 trillion won. MBK explained, "If Homeplus is liquidated, Meritz, as the primary trust collateral holder for real estate, will recover not only the 256.1 billion won in principal and interest already collected but also an additional collateral value of about 1.56 trillion won, reflecting the annual 20% delinquency interest rate applied since the start of the rehabilitation procedure." MBK added, "As a result, Meritz will be able to recover the entire initial loan principal of 1.3 trillion won as well as secure an additional profit of approximately 516.1 billion won."

MBK stated it has supported Homeplus with several hundred billion won and is working to prevent its bankruptcy. "We have already written off our entire investment of 2.5 trillion won, and as the investment management institution for both domestic and overseas pension funds that are major shareholders, MBK has provided 400 billion won to help normalize Homeplus," MBK said. "Most recently, MBK also expressed willingness to provide an additional guarantee of around 100 billion won if a DIP loan of 200 billion won is executed."

Finally, MBK urged Meritz, "What Homeplus is asking of its largest creditor, Meritz Financial Group, is not to liquidate Homeplus, but to pursue normalization so that employees, partners, and small business owners can all prosper together." MBK emphasized, "As the primary real estate trust collateral holder, Meritz can still recover its principal and interest through the rehabilitation process." MBK added, "Rather than recovering its claims by selling collateral assets in the course of Homeplus's liquidation, it would actually be more advantageous for both Meritz and society in terms of costs to support Homeplus's recovery."

This content was produced with the assistance of AI translation services.