MBK, Meritz strike last-ditch deal to rescue Homeplus

Homeplus, once Korea's second-largest discount store chain, secured a 200 billion won ($135 million) emergency loan, Thursday, giving itself a chance to revive its court-led rehabilitation after its largest creditor, Meritz Financial Group, approved the financing.

The decision came a day after private equity firm MBK Partners, Homeplus' owner, and its chairman, Michael ByungJu Kim, agreed to provide joint personal guarantees for the full amount of the debtor-in-possession loan.

The funding allows Homeplus to appeal the Seoul Bankruptcy Court's earlier decision to terminate its rehabilitation proceedings.

The court ended the restructuring process on July 3, ruling that the company had failed to secure the minimum 200 billion won needed to carry out its turnaround plan.

It nevertheless left the door open to reconsidering the case if the financing was secured before the July 20 appeal deadline.

The breakthrough follows months of deadlock between Meritz and MBK over the size of the loan and the guarantees required to secure it.

Meritz had previously agreed to lend up to 100 billion won, provi ...