▲ A Homeplus store (Yonhap)

SEOUL, July 16 (Yonhap) -- The main creditor of Homeplus Co. decided Thursday to extend fresh funding worth 200 billion won (US$134 million) for the financially troubled discount store chain that temporarily closed its outlets earlier this week amid a lack of operating capital.

The decision came after Meritz Financial Group agreed to extend the funding in exchange for the full guarantee by private equity fund MBK Partners, which wholly owns the retailer.

Earlier this month, a court decided to terminate rehabilitation proceedings for Homeplus, pushing the company closer to shuttering its doors as it struggles to find a buyer.

The Seoul Bankruptcy Court rejected Homeplus' revised rehabilitation plan, noting the company failed to come up with the necessary funds of at least 200 billion won to carry out the plan.

With the fresh funding, Homeplus is able to appeal the court's decision to terminate its rehabilitation proceeding.

The retailer has become financially strapped due to a slump in the discount store industry and entered court-led rehabilitation proceedings in March last year.

MBK Partners acquired a 100 percent stake in Homeplus in 2015 from British retailer Tesco Plc for 7.2 trillion won.

Once the country's second-largest discount store chain, Homeplus at its peak operated more than 140 stores nationwide.

However, the retailer's financial condition deteriorated as the discount store industry weakened, eventually leading to its court-supervised rehabilitation.

Efforts to secure additional funding also have been hindered by a prolonged dispute over responsibility between MBK Partners and Homeplus' largest creditor.

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