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Court approves M&A request by Homeplus prior to rehabilitation plan approval

June 20, 2025

A court on Friday approved a request to allow discount store chain Homeplus Co. to pursue a merger and acquisition (M&A) deal before a court decision on whether to approve its rehabilitation plan.

The Seoul Bankruptcy Court approved Homeplus’ pursuit of the M&A deal and the selection of an M&A adviser prior to its rehabilitation plan-related court ruling.

The court said the M&A will be carried out on terms favorable to all interested parties, including the debtor company’s creditors and employees, and rehabilitation security rights and rehabilitation claims will be repaid early.

Homeplus filed for corporate rehabilitation with the Seoul Bankruptcy Court in March after two domestic credit rating agencies downgraded its corporate bonds from A3 to A3-, citing the company’s lack of progress in improving its financial health. The company is required to submit its rehabilitation plan to the court by July 10.

A court-appointed accounting firm last week recommended the approval for Homeplus’ pursuit of the M&A deal.

This March 9, 2025, file photo shows a Homeplus Co. store in Seoul. (Yonhap)
This March 9, 2025, file photo shows a Homeplus Co. store in Seoul. (Yonhap)