The Seoul Bankruptcy Court has decided to launch corporate rehabilitation procedures for Homeplus after the retailer filed for the remedial measure to support its preemptive restructuring efforts. 

The court reached the decision Tuesday, eleven hours after the hypermarket chain made its request. 

The court said Homeplus is currently operating normally and has not gone bankrupt in terms of settling payments, but that the company could be expected to become cash-strapped in May without improvements to its financial structure.

In making its decision, the court opted not to select a manager, meaning the retailer’s current executives can continue to manage the company.  

Also on Tuesday, the court decided to grant Homeplus a comprehensive permit for business continuity under which the company will be able to take rehabilitation steps while continuing to clinch deals with subcontractors, hold anniversary discount events and pay workers’ wages.