Homeplus Objects to $67 Million Meritz Loan Terms, Jeopardizing Emergency Funding
Updated
Updated · Bloomberg · May 18
Homeplus Objects to $67 Million Meritz Loan Terms, Jeopardizing Emergency Funding
1 articles · Updated · Bloomberg · May 18
Homeplus said a roughly 100 billion won ($67 million) bridge loan from Meritz Financial Group is at risk because it objects to a condition attached by its largest creditor.
The retailer said its executives and owner MBK Partners cannot provide the personal guarantees Meritz wants because they have already given joint assurances for other funding support.
Homeplus instead proposed pledging subordinated rights tied to its real estate holdings as alternative collateral for the emergency financing.
The dispute leaves the South Korean retailer still seeking near-term liquidity support, with talks now hinging on whether Meritz accepts the substitute security.
With ₩4 trillion in collateral, is a creditor's demand for more guarantees a safeguard or a power play?
Is a private equity giant letting its retail chain collapse over a loan guarantee, or is there more to the story?