Homeplus Requests Emergency Operating Loans From Meritz Securities

Homeplus Co. on Sunday requested emergency operating loans from its largest creditor, Meritz Securities Co. "Meritz controls most of the retailer's key assets through collateral trusts, leaving the company with few options to secure operating funds independently," Homeplus said.

" Meritz said it is reviewing the bridge loan request but requires firm repayment guarantees because of concerns over potential breach-of-trust liabilities.

Homeplus recently sold its supermarket business, Homeplus Express. The company also temporarily suspended operations at 37 of its 104 hypermarkets. Only 67 stores remain in operation.

9 billion). The retailer entered court-led rehabilitation proceedings in March last year after facing financial pressure from a slump in the discount store industry. Industry sources said a joint guarantee from MBK Partners is necessary to avoid potential breach-of-trust allegations and persuade shareholders to support additional financing amid uncertainty over the retailer's rehabilitation prospects.