"We Will Give Up Our Salaries": Homeplus Union Adopts 'Resolution for Normalization' in a Last Stand

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[Financial News] The Homeplus labor union has resolved to give up its salaries in an effort to normalize the company. It also called on Meritz Financial Group, its largest creditor, to provide financial support.
According to the union on the 1st, the Homeplus General Labor Union adopted a plan to forgo wages at its 30th regular delegates' meeting held the previous day.
The union said, "We are giving up our wages to secure the sustainability of Homeplus," and stressed that "the entire amount should be used for restoring operations and ensuring product supply."
It also urged Meritz Financial Group to "immediately inject emergency operating funds (DIP) to maintain business momentum during the rehabilitation period" and to "quickly decide on a bridge loan as well."
It added, "Workers' wages, the proceeds from the sale of Homeplus Express, and DIP funds should all be concentrated on restoring operations," and said, "We hope the extended rehabilitation period will not simply be a way to buy time, but a foundation for Homeplus to make a comeback."
Earlier, Homeplus also urged Meritz to provide liquidity, saying, "It is difficult to sustain operations with only the proceeds from the Express sale, so please make a swift decision that takes into account both recoverability and rehabilitation value."
On the 30th of last month, the Seoul Bankruptcy Court decided to extend by two months the deadline for approving Homeplus' rehabilitation plan, which had been set for the 4th. The court said it would reassess whether the plan could be carried out after reviewing progress in the sale of the supermarket division.
Homeplus and its sale manager, Samil PricewaterhouseCoopers, have selected Harim Holdings (NS Shopping) as the preferred bidder for Homeplus Express and are negotiating the details.
After filing for corporate rehabilitation in March last year, Homeplus pushed ahead with a sale. But when no buyer emerged, it is now pursuing a 'structural innovation rehabilitation plan' that includes a separate sale of the supermarket division and the injection of 300 billion won in DIP funds.
unsaid@fnnews.com Kang Myeong-yeon Reporter