Seoul, Jan 11 The chairman of private equity firm MBK Partners, Kim
The Seoul Central District Court was scheduled to hold the hearing on Tuesday after prosecutors sought arrest warrants for Kim and other senior executives, including a co-chief executive of Homeplus, on charges of fraud and violation of the Capital Markets Act, reports Yonhap news agency.
A ruling by the court is expected to have an impact on a prolonged battle between MBK Partners and Korea Zinc Co. MBK Partners and Korea Zinc, the world's largest zinc smelter, have been in a bitter dispute over management control.
Industry watchers said Korea Zinc Chairman Choi Yun-beom may gain the upper hand in the management control battle against an alliance between the company's largest shareholder, Young Poong Corp., and MBK Partners.
Korea Zinc, meanwhile, said in December the company and the U.S. government were seeking to jointly invest around 10 trillion won to build a critical metals refinery in Tennessee, while transferring a 10 percent stake to their joint venture.
The 10 percent stake is expected to further solidify Choi's grip on the company at the scheduled shareholders' meeting in March while Kim Byung-ju is embroiled in legal issues surrounding Homeplus, industry watchers said.
Meanwhile, the financially troubled discount store chain Homeplus said it submitted its rehabilitation plan to the bankruptcy court last month, with creditors raising no objections to the proposal.
The rehabilitation plan focuses on Homeplus' business reorganisation, and a merger and acquisition (M&A) process to find a new owner after court approval of the plan, Homeplus said in a press release.
At the request of the Seoul Bankruptcy Court, creditors represented by Meritz Securities Co. have raised no questions about the Homeplus rehabilitation program, the company said.
The programme includes measures to secure emergency operating funds, shut down dozens of loss-making Homeplus outlets, offload non-core business units and relocate workers.
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