SEOUL (Reuters) -A South Korean court approved on Friday grocery retailer Homeplus’s plan to sell the struggling company, in a move that the court said was aimed at providing funds to repay creditors and to ensure job security for employees at the company.
In March, MBK Partners, a private equity firm which owns the company, filed for a court-led restructuring of Homeplus, marking a setback to the firm’s marquee, $6.1 billion deal made more than a decade ago.
A spokesperson for MBK said on Friday it will support the successful sale of the company and plans to write off 2.5 trillion won ($1.83 billion) worth of common shares that it holds in the company as part of the sale.
The Seoul Bankruptcy Court approved a plan to appoint accounting firm Samil PricewaterhouseCoopers to manage the sale, which will take two of three months, the court said in a statement.
The court said the sale would help channel funds into the company and pay back debts to its creditors, while guaranteeing the job security of Homeplus employees and protecting partner firms by avoiding bankruptcy.
($1 = 0.7424 pounds)
($1 = 1,369.2100 won)
(Reporting by Hyunjoo Jin and Hyunsu Yim; Editing by Jacqueline Wong, Ed Davies)
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