Homeplus’ accounting practices were lawful and MBK Partners Chairman Michael ByungJu Kim played no role in the matter, the private equity firm said Monday, rejecting the prosecution’s allegations and media reports. MBK, the largest shareholder of the country’s second-largest supermarket chain, also said the conversion of redeemable convertible preferred shares (RCPS) issued by Homeplus and the revaluation of its land assets were legitimate accounting measures carried out in full compliance with applicable accounting standards. The remarks came as detention hearings are set to take place at the Seoul Central District Court for Chairman Kim, MBK Vice Chairman and Homeplus co-CEO Kim Kwang-il, MBK Vice President Kim Jeong-hwan and Homeplus Chief Financial Officer Lee Sung-jin. Last week, the Seoul Central District Prosecutors’ Office requested arrest warrants for the four in connection with Homeplus’ controversial filing for court-led rehabilitation in March last year. “Chairman Kim had no involvement in the accounting matters at issue,” an MBK official said. “The appropriat